Cowhand's Bar-B-Q House went into business on January 1, 2009. The following information is available at December 31, 2009:
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Sales revenue for the year
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$300,000
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Cash on hand at 12-31-2009
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8,000
|
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Contributed capital
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50,000
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Wages payable at year end
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15,000
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Cash received from customers during the year
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190,000
|
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Dividends paid during the year
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8,000
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Expenses incurred during the year (depreciation expense = $0)
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195,000
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Cash paid to buy long-term assets during the year
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25,000
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Accounts receivable at year-end
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?
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Required:
Determine the correct amount for each of the following:
a. What is the amount of net income?
b. What amount should be reported for retained earnings at year-end 2009?
c. What is the amount of accounts receivable at year end?