Sandra Owns an Insurance Agency Calculate Sandra's Net Profit Using the Cash Method for 2017

question 99

Essay

Sandra owns an insurance agency.The following selected data are taken from the agency balance sheet and income statement prepared using the accrual method. $\begin{array}{lr}\text { Revenue } & \$ 250,000 \\\text { Salaries and commissions } & 100,000 \\\text { Rent } & 10,000 \\\text { Insurance } & 5,000 \\\text { Utilities } & 6,000 \\\text { Accounts receivable, } 1 / 1 / 2017 & 40,000 \\\text { Accounts receivable, } 12 / 31 / 2017 & 38,000 \\\text { Accounts payable, } 1 / 1 / 2017 & 12,000 \\\text { Accounts payable, } 12 / 31 / 2017 & 11,000\end{array}$ Calculate Sandra's net profit using the cash method for 2017.

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Definitions:

Natural Rate Of Unemployment

The level of unemployment consistent with a stable rate of inflation, where labor market is in equilibrium.

Unemployed Workers

Individuals who are without a job but are actively seeking employment.

Sectoral Shifts

Changes in economic activity or labor market demand across different sectors or industries over time.

Temporarily Cause Unemployment

Situations or policies that lead to a short-term increase in unemployment, as workers transition between jobs or industries adjust to new conditions.