Martin Sharp operates a lawn mower repair business. He maintains an inventory of repair parts that are purchased from a wholesale supplier. Martin's records show the following information for the first 3 months of 2019.

Required:
1. Ignoring expenses other than repair parts, calculate net income for each of the 3 months on a cash basis.
2. Ignoring expenses other than repair parts, calculate net income for each of the 3 months on an accrual basis.
3. Why do decision-makers prefer accrual-basis accounting?

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Cost of Parts Used in Repairs Cash Collected for Repair Work Amounts Billed Cash Payments to Supplier to Customers $2,800 3,500 3,275 $3,200 2,475 2,910 $1,165 300 $915 605 January February March 880