Question 17 (6 points total)

You are the accounting manager of ABC Inc, which sells laptops. Your company has the following transactions for the month of December, 2019:

1. December 1^st: Ordered 10,000 laptops from LOHAS Park Inc and paid cash of $200.
2. December 1^st: Bought a delivery truck from Sham Shui Po Motors Inc for $36,000. You estimate that this delivery truck can be used for anywhere between 12 to 36 months.
3. December 5^th: Spent $20 in cash on each laptop to package it.
4. Dec 10^th: Delivered 10,000 laptops for a price of $500 to Sai Ying Pun Inc. and received cash for the entire order.
5. December 20^th: Ordered 5,000 laptops from LOHAS Park Inc. and paid cash of $250.
6. December 29^th: Received a call from HKUST Inc. saying that they want 5,000 laptops. HKUST Inc. said that they can receive delivery any time between December 30^th, 2019 and January 5^th, 2020. You also know that HKUST Inc. will only be able to pay in February, 2020 as it is going through financial trouble. A credit check allowed you to find out that HKUST Inc. will only be able to pay between 80 90% of the full amount.

Your CEO, Mrs. Lantau, asks you to present her some accounting numbers by the end of day on December 31^st, 2019.

What is the highest value of net income you can report to her?

What is the lowest value of net income you can report to her?

What is the highest value of cash provided by operations you can report to her?

What is the lowest value of cash provided by operations you can report to her?