Byfort Company Reports the Following in Its Financial Statements *All Sales Are on Credit

question 19

Multiple Choice

Byfort Company reports the following in its financial statements:
$$\begin{array} { | l | c | c | } \hline & \underline { 2005 } & \underline { 2006 } \\\hline \text { Accounts Receivable, net } & \$ 34,289 \mathrm {~K} & \$ 29,678 \mathrm {~K} \\\hline \text { Net sales } & \$ 360,007 \mathrm {~K} & \$ 450,000 \mathrm {~K} \\\hline\end{array}$$ *All sales are on credit.
-How much sales would have been reported by the company in 2006 if Byfort would have been using cash accounting and not accrual accounting?

• A) $445,389K
• B) $454,611K
• C) $484,289K
• D) $488,900K

---

Definitions:

Public Good

A good that, once produced, is available for all to consume, regardless of who pays and who doesn’t; such a good is nonrival and nonexclusive, such as a safer community.

Regardless Of Payment

A phrase indicating that an action or decision is to be made without considering the payment or compensation involved.

Police Protection

Services provided by law enforcement agencies to ensure public safety and enforce the law.

Taxation

The process by which governments impose financial charges on individuals or entities, which funds public spending and services.