Canviar Corp. maintains its financial records using the cash basis of accounting. As it would like to secure a long-term loan from its bank, the company asks you, as an independent CPA, to convert its cash basis income statement information to the accrual basis. You are provided with the following summarized data for 2015, 2016, and 2017:

Instructions
Using the information above, prepare abbreviated income statements for the years 2015 and 2016, using:
(a) The cash basis of accounting,
(b) The accrual basis of accounting.

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2015 2016 2017 Cash receipts from sales: On 2015 sales On 2016 sales On 2017 sales $320,000 $160,000 30,000 90,000 408,000 3 -0355,000 Cash payments for expenses: On 2015 expenses On 2016 expenses On 2017 expenses 185,000 67,000 40,000 135,000 25,000 55,000 45,000° 218,000 Prepayments of 2016 expense Prepayments of 2017 expense