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Primo Industries collected $104,474 from customers in 2015. Of the amount collected, $25,373 was from services performed in 2014. In addition, Primo performed services worth $38,264 in 2015, which will not be collected until 2016. Primo Industries also paid $71,280 for expenses in 2015. Of the amount paid, $29,224 was for expenses incurred on account in 2014. In addition, Primo incurred $40,536 of expenses in 2015, which will not be paid until 2016. a. Compute 2015 cash-basis net income. b. Compute 2015 accrual-basis net income.

Primo Industries collected $104,474 from customers in 2015. Of the amount collected, $25,373 was from services performed in 2014. In addition, Primo performed services worth $38,264 in 2015, which will not be collected until 2016. Primo Industries also paid $71,280 for expenses in 2015. Of the amount paid, $29,224 was for expenses incurred on account in 2014. In addition, Primo incurred $40,536 of expenses in 2015, which will not be paid until 2016. a. Compute 2015 cash-basis net income. b. Compute 2015 accrual-basis net income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Primo Industries collected $104,474 from customers in 2015. Of the amount collected, $25,373 was from services performed in 2014. In addition, Primo performed services worth $38,264 in 2015, which will not be collected until 2016. Primo Industries also paid $71,280 for expenses in 2015. Of the amount paid, $29,224 was for expenses incurred on account in 2014. In addition, Primo incurred $40,536 of expenses in 2015, which will not be paid until 2016. a. Compute 2015 cash-basis net income. b. Compute 2015 accrual-basis net income.
Transcribed Image Text:Primo Industries collected $104,474 from customers in 2015. Of the amount collected, $25,373 was from services performed in 2014. In addition, Primo performed services worth $38,264 in 2015, which will not be collected until 2016. Primo Industries also paid $71,280 for expenses in 2015. Of the amount paid, $29,224 was for expenses incurred on account in 2014. In addition, Primo incurred $40,536 of expenses in 2015, which will not be paid until 2016. a. Compute 2015 cash-basis net income. b. Compute 2015 accrual-basis net income.
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