Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $375,000; cash paid for rent, $47,000; cash paid to employees for services rendered during the year, $127,000; cash paid for utilities, $57,000. in addition, you determine that customers owed the company $67,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,700 at year-end, and the rent payment was for a two-year period. calculate accrual net income for the year.

Net Income for the year            234.500

Explanation:

IncomeCash collected375.000  

IncomeCustomer Owed67.000  

Total Income                  442.000  

ExpensesEmployees127.000  

                Utilities               57.000  

                Rent                          23.500The effect on results of for 1 year was paid for 2 years in advance.  

Total Expenses          207.500  

Net Income                 234.500  

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