Table 1

HQN's 2018 accrual income statement

Date2018
“+”Cash receipts$38,990
“+”Change in accounts receivable($440)
“+”Change in inventories$1,450
“+”Realized capital gains (losses)$0
Total revenue $40,000
“+”Cash cost of goods sold$27,000
“+”Change in accounts payable$1,000
“+”Cash overhead expenses$11,078
“+”Change in accrued liabilities($78)
“+”Depreciation$350
Total expenses $39,350
Earnings before interest and taxes (EBIT)$650
“−”Less interest costs$480
Earnings before taxes (EBT)$170
“−”Less taxes$68
Net income after taxes (NIAT)$102
“−”Less dividends and owner draw$287
Addition to retained earnings($185)

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