Question

Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $43,900 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $1,400. Accounts receivable increased $1,100, supplies increased $4,000, and accrued liabilities increased $1,950. Pat's accrual-basis net income was:

Answer 1

Amount collected	$         43,900
Less:
Expenses	$         14,000
Depreciaiton	$           1,400
Accured liabilities increased	$           1,950
Add:
Account receivables increased	$           1,100
Supplies increased	$           4,000
Net Income	$         31,650