S3-1. (Learning Objective 1: Explain how accrual accounting differs from cash-basisaccounting) Southeast Corporation made sales of $950 million during 2018. Of this amount,Southeast collected cash for $876 million. The company’s cost of goods sold was $260 million,and all other expenses for the year totaled $275 million. Also during 2018, Southeast paid $410million for its inventory and $250 million for everything else. Beginning cash was $75 million.a. How much was Southeast’s net income for 2018?b. How much was Southeast’s cash balance at the end of 2018?
S3-1. (Learning Objective 1: Explain how accrual accounting differs from cash-basisaccounting) Southeast Corporation made sales of $950 million during 2018. Of this amount,Southeast collected cash for $876 million. The company’s cost of goods sold was $260 million,and all other expenses for the year totaled $275 million. Also during 2018, Southeast paid $410million for its inventory and $250 million for everything else. Beginning cash was $75 million.a. How much was Southeast’s net income for 2018?b. How much was Southeast’s cash balance at the end of 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S3-1. (Learning Objective 1: Explain how accrual accounting differs from cash-basis
accounting) Southeast Corporation made sales of $950 million during 2018. Of this amount,
Southeast collected cash for $876 million. The company’s cost of goods sold was $260 million,
and all other expenses for the year totaled $275 million. Also during 2018, Southeast paid $410
million for its inventory and $250 million for everything else. Beginning cash was $75 million.
a. How much was Southeast’s net income for 2018?
b. How much was Southeast’s cash balance at the end of 2018?
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