Toole Company had the following transactions during 2016:
$\bullet$ Sales of $4200 on account
$\bullet$ Collected $2600 for services to be performed in 2017
$\bullet$ Paid $1630 cash in salaries
$\bullet$ Purchased airline tickets for $450 in December for a trip to take place in 2017
What is Toole's 2016 net income using cash basis accounting?

A) $520.
B) $970.
C) $4720.
D) $5170.

Cash Basis Accounting

An accounting method where revenues and expenses are recognized when cash is received or paid, rather than when earned or incurred.

Net Income

The total earnings of a company after all expenses and taxes have been subtracted from revenue.

Sales

The total amount of goods or services sold by a company within a specific period; it is a primary source of revenue for retail and manufacturing businesses.