4. ABC Company uses cash-basis accounting for its records. During 2010 ABC collected $400000 from its customers made payments of $300000 to its suppliers for inventory and paid $140000 for operating costs. ABC wants to prepare accrual-basis financial statements. In gathering information for the accrual-basis financial statements ABC discovered the following: Customers owed ABC $45000 at the beginning of 2010 and $55000 at the end of 2010. ABC owed suppliers $20000 at the beginning of 2010 and $28000 at the end of the 2010. ABCs beginning inventory was $40000 and its ending inventory was $44000.What should ABCs Gross Profit be on the accrual basis? $______________________________
