Pina Colada Industries collected $105,000 from customers in 2019. Of the amount collected, $25,700 was for services performed in 2018. In addition, Pina Colada performed services worth $40,700 in 2019, which will not be collected until 2020. Pina Colada Industries also paid $72,900 for expenses in 2019. Of the amount paid, $30,500 was for expenses incurred on account in 2018. In addition, Pina Colada incurred $43,200 of expenses in 2019, which will not be paid until 2020. Compute 2019 cash-basis net income.

Respuesta :

Answer: $32,100

Explanation:

1. Cash Basis  net income in 2019:

Given that,

Pina Colada Industries collected = $105,000

services performed in 2018 = $25,700

services performed in 2019 = $40,700

Paid for expenses in 2019 = $72,900

Net Income = Amount collected from customers - Paid for expenses in 2019

                    = $105,000 - $72,900

                    = $32,100