Question

MC Qu. 67 Molly's Auto Detailers maintains its records on the cosh basis... Molly's Auto Detaliers maintains its recoeds on the cesh basis Duing 2018, Moly's collected $72.300 rom customers and peid $19900 in expenses Deprecietion ccruai basis. Ove te course of the year acrons receivable rcreased $4100, prepad oornses decreased Stoo, and accrued literes decreased S2600 MIS Kemel base net room e-as espense of $4100 would have been recorded on the 53200

Answer 1

B. $53,700

Collections	$72,100
Payments for expenses	($19,900)
Add: Increase in assets (accounts receivable)	$4,100
Deduct: Decrease in assets (accumulated depreciation)	($4,100)
Deduct: Decrease in assets (prepaid expenses)	($1,100)
Add: Decrease in liabilities (accrued liabilities)	$2,600
Accrual basis net income	$53,700