On December 31, 2019, Pack N-Deliver Company completed its first year of operations. The following information has been provided for the year: a. Sold packing supplies for $30,000 and provided $280,000 of delivery services. b. All packing supplies sales were for cash. c. Collected $212,000 of delivery service revenue. d. Paid $15,000 cash to rent packing equipment, with $10,000 for rental in 2019 and the remaining amount for rental in 2020. e. Spent $4,000 cash to repair delivery equipment during the year. f. Bought packing supplies at a total cost of $46,000 and paid for $25,000 of these supplies. There were $20,000 of these supplies that have not yet been sold or used. g. Paid employees $80,000 cash during the year. h. Paid $16,000 cash for advertisin g for the year. i. Used $14,000 in fuel for the delivery equipment. j. Sold investments for $8,000 that had been purchased earlier in the year for $7,000. k. Ordered $500 in spare parts and supplies. 1. Income tax expense for the year is $18,000.

Olivia Smith is the owner of an unincorporated business that does landscaping. The business began operations on January 2, 2019 and has a December 31 year end. The 2019 and 2020 results for the business can be described as follows: 2019 During its first year, the business had sales of delivered merchandise and services totaling $185,000. OF this total $65,000 had not been collected on December 31, 2019. Olivia anticipates that #5,000 of these sales will be uncollectible. In addition to these sales of delivered merchandise and services, she received $23,000 in advances for merchandise to be delivered in 2020. Olivia purchased a large supply of landscaping materials from the trustee of a bankrupt landscaping business at a very good price. Since she is unlikely to use them in the next few years, she has arranged to sell these materials for $50,000. These materials have a cost of $40,000, resulting in a total gross profit of $10,000. Because of the size of this sale, she has agreed to…

Brady Corporation is preparing an income statement for year ended 12/31/20.  During the final week of 2020, Brady earned revenues of $6,000 on account.  It expects to collect the $6,000 on 1/10/21.  Brady also incurred $1,500 of payroll costs which will be paid to employees on 1/15/21.  Brady also paid cash of $500 for office cleaning services.  No other transactions occurred in 2020.   What is the net income of Brady Corporation if it uses cash basis accounting?