Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $370,000; Cash paid for rent, $46,000; Cash paid to employees for services rendered during the year, $126,000; Cash paid for utilities, $56,000.In addition, you determine that customers owed the company $52,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,200 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.

Accrual Net Income = $215,800

Explanation:

Rent expense incurred =Totalrentpaid /TotalNumberofyears

Rent expense incurred = $46,000 / 2years

Rent expense incurred = $23,000

Working notes

Total revenue=Sum of total revenue earned during the period

Total revenue = Cash collected from customers + amount owed by the customers at they earned

Total revenue = $370,000 + $52,000

Total revenue = $422,000

Total expenses= Sum of total expenses incurred by the company

Total expenses = Cash paid for rent expense + cash paid for employees salaries + cash paid for utilities + gas and electric expenses accrued

Total expenses = $23,000 + $126,000 + $56,000 + $1,200

Total expenses = $206,200

Net Income = Total revenue - Total expenses

Accrual Net Income = $422,000 - $206,200

Accrual Net Income = $215,800

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know