The Following Data Relate to Falcon Company for the Year

question 3

Multiple Choice

The following data relate to Falcon Company for the year ended December 31, 2012.Falcon Company uses the cash basis. $$\begin{array} { l r } \text { Sales for cash } & \$ 180,000 \\\text { Sales for credit } & 190,000 \\\text { Cost of inventory sold } & 210,000 \\\text { Collections from customers } & 350,000 \\\text { Purchases of inventory on credit } & 200,000 \\\text { Payment for purchases } & 220,000 \\\text { Selling expenses (accrual basis) } & 60,000 \\\text { Payment for selling expenses } & 70,000\end{array}$$ Which of the following amounts represents income for Falcon Company for the year ended December 31, 2012?

• A)$90,000
• B)$80,000
• C)$70,000
• D)$60,000
• E)None of the answers are correct.

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