Mace Company has provided the following information for the year just ended: Cash sales totaled $130,000, Credit sales totaled $219,000, Cash collections from customers for services that have not been provided yet totaled $12,000.

Mace Company has provided the following information for the year just ended: Cash sales totaled $130,000, Credit sales totaled $219,000, Cash collections from customers for services that have not been provided yet totaled $12,000. There was a $3,000 gain from the sale of property and equipment. Interest expense totaled $9,500. How much did net income increase due to these items?

A.) $339,500

B.) $353,300

C.) $350,800

D.) $342,500

Expert Solution

We shouldn't consider the cash collections where services have not provided yet.

Net income= cash sales+credit sales-interest expenses+gain on sale of property and equipment=130000+219000-9500+3000=342,500 (option d is correct)

jeff jeffy answered 2 years ago

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