Use the following information to calculate the company’s accounting ne

Use the following information to calculate the company’s accounting net income for the year.

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%
A) $125,000 B) $120,000 C) $240,000 D) $300,000

ANSWER

C