Credit Sales - $800,000 Cash Sales - $500,000 Operating Expenses on Credit - $ 2

Question

                                                                                                 Credit Sales - $800,000

                                                                                                 Cash Sales - $500,000

Operating Expenses on Credit - $200,000

Cash Operating Expenses - $700,000

Accounts Receivable (Beg of Year) - $50,000

Accounts Receivable (End of Year) - $80,000

Accounts Payable (Beg of Year) - $50,000

Accounts Payable (End of Year) - $100,000

Corporate Tax Rate - 40%

Find Net Income:

A) $120,000

B) $300,000

C) $125,000

D) $240,000

Explanation / Answer

D) $240,000

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