21. Cash flows during the first year ofoperations for the Harman-KardonConsulting Company were as follows:Cashcollected from customers, $120,000; Cashpaid for rent $40,000; Cash paid toemployees for services rendered during theyer, $120,000; Cash paid for utilities,$50,000.In addition, you determine thecustomers owed the company $60,000, atthe end of the year and no bad debts wereanticipated. Also, the company owed thegas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate acrual net income forthe year.

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year period. Calculate acrual net income for the year.

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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Question

21. Cash flows during the first year of
operations for the Harman-Kardon
Consulting Company were as follows:Cash
collected from customers, $120,000; Cash
paid for rent $40,000; Cash paid to
employees for services rendered during the
yer, $120,000; Cash paid for utilities,
$50,000.In addition, you determine the
customers owed the company $60,000, at
the end of the year and no bad debts were
anticipated. Also, the company owed the
gas and electric company $2,000 at year-
end, and the rent payment was for a two-
year period. Calculate acrual net income for
the year.

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