Consider the following economic events involving Leon€™s. Indicate whether Leon€™s would include each item in a calculation of net income using cash accounting and accrual accounting for the year ended December 31, 2016. Provide a brief explanation for yourtreatment:

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Net income on the cash basis Net income on the accrual hasis Economic Event Example: Leon's sells furniture to a Yes, because cash customer for cash. is collected from a customer. Yes, because a sale with a customer has been completed a Leon's sells furniture to a franchise store. Payment will be made in January 2017 b. Dividends are declared and paid to shareholders in December 2016 c. During 2016 Leon's sells inventory for cash. Leon's hasn't yet paid for the inventory that has been sold d. A customer pays a deposit in December 2016 goods that will be delivered in February 2017 e. Leon's purchases and pays for stoves in December 2016. The inventory is unsold as of the year-end f. Leon's depreciates its stores in 2016 g. Leon's pays employees in December 2016 for their work in November