Chance Corporation began operating a new retail business in the current year and had $500,000 of sales, $70,000 of which had not been collected by year- end. Total purchases were $350,000 on which $30,000 is still owed. Ending inventory is $60,000; operating expenses are $170,000, $50,000 of which is still owed at year- end.
a. Compute net income from the business under the accrual method.
b. Compute net income from the business under the cash method.
c. Would paying the $50,000 she owes for operating expenses before year- end change her net income under th accrual method? Under the cash method?

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The Answer of Chance Corporation began operating a new retail business in the current year and had $500,000 of sales, $70,000 of which had not been collected by year- end. Total purchases were $350,000 on which $30,000 is still owed. Ending inventory is $60,000; operating expenses are $170,000, $50,000 of which is still owed at year- end.
a. Compute net income from the business under the accrual method.
b. Compute net income from the business under the cash method.
c. Would paying the $50,000 she owes for operating expenses before year- end change her net income under th accrual method? Under the cash method?

Chance Corporation Began Operating a New Retail Business in the Current