Question

During Year 1, Silver Sinks, Inc. earned $33,000 of revenue on account. Cash collections of receivables were $28,000. The remainer of the receivables were collected in Year 2. As a result of these transactions, Silver Sink will report Year 1 net income of ______.

Answer 1

Answer:

Net income = $33,000

Cash inflow from operating activities = $28,000

Explanation:

Given:

Earned 1st year = $33,000

Cash collections =e $28,000

Amount remain for 2nd year = Earned 1st year - Cash collections

Amount remain for 2nd year = $33,000 - $28,000

Amount remain for 2nd year = $5,000

Income must be recorded when it get.