Final answer:
The available data from Sweet Catering's financial records does not provide monthly figures and is based on accrual accounting rather than cash basis. to calculate net income (loss) using the Cash method for May, precise cash transaction data for that month would be necessary, which is not provided. therefore we cannot determine Sweet Catering's net income (loss) for the month of May with the given information.
Step-by-step explanation:
If Sweet Catering had recorded transactions using the Cash method, to determine how much net income (loss) they would have recorded for the month of May, we would need to look at the cash received and cash paid out during that month and calculate the difference. Unfortunately, the provided information does not include specific cash transactions for May, only figures for the annual accounting profit and the components of that profit.
Given the data from the provided chapters, the accounting profit is calculated as total revenues ($1,000,000) minus explicit costs ($600,000 in labor, $150,000 in capital, and $200,000 in materials), which equals to a profit of $50,000. This calculation, however, does not reflect the cash basis of accounting as it does not specify when the revenues were received or when the expenses were paid. Furthermore, these numbers represent an annual overview, rather than a monthly figure like the question asks for May. to find the net income (loss) for May on a cash basis, we would need information specific to cash transactions that took place in May which are not provided here. Without these monthly transaction values, we cannot accurately answer this question.