Brad operates a hardware store. He maintains the books using the cash method. At the end of the year, his accountant computes his accrual basis income that is used on his tax return. For 2018, Brad had cash receipts of $2,200,000, which included $750,000 collected on accounts receivable from 2017 sales. At the end of 2018, he had $910,000 in accounts receivable from customers, all from 2018 sales. Brad paid cash for all of the purchases. The total amount he paid for merchandise in 2018 was $1,100,000. At the end of 2017, he had merchandise on hand with a cost of $165,000. At the end of 2018, the cost of merchandise on hand was $140,000. a. Brad's accrual basis gross receipts for 2018 are:
b. The cost of goods sold for 2018 under the accrual method is:
c. The gross profit from merchandise sales for 2018 under the accrual basis is:

Brad Hardware Stores

a. Brad's accrual basis gross receipts for 2018 are:

= $1,450,000.

b. The cost of goods sold for 2018 under the accrual method is:

= $1,125,000.

c. The gross profit from merchandise sales for 2018 under the accrual basis is:

= $1,235,000.

Explanation:

a) Data and Calculations:

Sales revenue for 2018:

Cash receipts =                       $2,200,000

Less 2017 accounts receivable $750,000

Add 2018 accounts receivable  $910,000

Sales revenue for 2018 =       $2,360,000

Gross receipts for 2018:

Cash receipts =                       $2,200,000

Less 2017 accounts receivable $750,000

Gross cash receipts =             $1,450,000

Purchases for 2018 = $1,100,000

Beginning inventory = $165,000

Ending inventory = $140,000

Cost of goods sold =  $1,125,000

Accrual Basis:

Sales revenue for 2018 = $2,360,000

Cost of goods sold =            1,125,000

Gross profit                       $1,235,000

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.