This Question: 1 pt 15 of 40 (0 complete) This Test: 40 Use the following inform

Question

This Question: 1 pt 15 of 40 (0 complete) This Test: 40 Use the following information to calculate the company's accounting net income for the year Credit Sales Cash Sales $800,000 $500,000 $200,000 $700,000 $50,000 $80,000 $50,000 $100,000 40% p Operating Expenses on Credit n Cash Operating Expenses Accounts Receivable (Beg of Year) Accounts Receivable (End of Year) Accounts Payable (Beg. of Year) Accounts Payable (End of Year) Corporate Tax Rate OA. OB. O C. OD, $300,000 $120,000 $125,000 $240,000 ow Click to select your answer xpert Answer search

Explanation / Answer

Net income = cash sales + credit sales - cash operating expenses - credit operating expenses - income tax

Net income = (800,000 + 500,000 - 700,000 - 200,000) * (1-tax rate)

Net income = 400,000 * (1 - 0.40)

Net income = $240,000

Answer is option D.

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