Question

The following is selected information from Pina Colada Corp. for the fiscal year ending October 31, 2022. Cash received from customers $330000 Revenue recognized 484000 Cash paid for expenses 187000 Cash paid for computers on November 1, 2021 that will be used for 3 years 52800 Expenses incurred including any depreciation 237600 Proceeds from a bank loan, part of which was used to pay for the computers 110000 Based on the accrual basis of accounting, what is Pina Colada's net income for the year ending October 31, 2022?

Answer 1

Pina Colada's net income for the year ending October 31, 2022 is $246,400.

Step-by-step explanation:

Net income = Revenue recognized - Expenses incurred including depreciation

= $484,000 - $237,600

= $246,400

Therefore, Pina Colada's net income for the year ending October 31, 2022 is $246,400.