Question - Primo Industries collected $105,005 from customers in 2014. Of the amount collected, $24,738 was from services performed in 2013. In addition, Primo performed services worth $38,098 in 2014, which will not be collected until 2015.
Primo Industries also paid $71,612 for expenses in 2014. Of the amount paid, $29,432 was for expenses incurred on account in 2013. In addition, Primo incurred $41,302 of expenses in 2014, which will not be paid until 2015.
A) Compute 2014 cash-basis net income.
B) Compute 2014 accrual-basis net income.