20. What is Cash Basis, Accrual Basis, and Tax Basis?
22
Cash Basis
Recognizes
Revenue &
Expenses
Accrual Basis Tax Basis
When Cash is
Received and
Expenses are Paid
Recognizes
Revenue &
Expenses
Recognizes
Revenue &
Expenses
When Earned &
Incurred
Cash or Accrual
Adjusted for Tax
Purposes
21. What is Cash Basis, Accrual Basis, and Tax Basis?
23
Only Cash
Only Cash
All Earnings
Not Paid
$1,990 Difference
35. # of Production EE 20
Revenue 4,000,000
Employee Cost 1,500,000
Burden Rate 1.24
Employee Cost 1,860,000
Other Production 160,000
Gross Profit 1,980,000
Overhead Cost 1,200,000
Admin 840,000
Sales & Marketing 360,000
Facility Cost 180,000
Total Overhead Cost 1,380,000
Net Income 600,000
38
Financial Statement Metrics
4,000,000
X 10%
400,000
Cash on Hand