Given the data below for a firm in its first year of operation determine net income under the cash basis of accounting. $\begin{array} { l r }
\text { Cash received from customers } & \$ 45,000 \
\text { Accounts receivable } & 12,000 \
\text { Cash paid for expenses } & 26,000 \
\text { Accounts payable (related to expenses) } & 3,000 \
\text { Prepaid rent for next period } & 7,000
\end{array}$

Question

Given the data below for a firm in its first year of operation determine net income under the cash basis of accounting. $\begin{array} { l r } 
\text { Cash received from customers } & \$ 45,000 \
\text { Accounts receivable } & 12,000 \
\text { Cash paid for expenses } & 26,000 \
\text { Accounts payable (related to expenses) } & 3,000 \
\text { Prepaid rent for next period } & 7,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Given the data below for a firm in its first year of operation determine net income under the cash basis of accounting. $\begin{array} { l r } 
\text { Cash received from customers } & \$ 45,000 \
\text { Accounts receivable } & 12,000 \
\text { Cash paid for expenses } & 26,000 \
\text { Accounts payable (related to expenses) } & 3,000 \
\text { Prepaid rent for next period } & 7,000
\end{array}$

Given the Data Below for a Firm in Its First