Accrual-Basis Accounting
(Appendix 3.1) Vickelly Company uses cash-basis accounting. At the end of the current year, Vickelly's checkbook shows cash receipts from austomers of. $112,000 and cash payments for operating expenses of $48,000 for the year. At the end of the year, Vickelly determined that oustomers owed it $12,000, and it owed creditors $10,000. Compute Vickelfy's sales revenue, operating expenses, and net income on an accrual basis:
Sales revenue:
Operating expenses:
Net income: