Grouper Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Grouper Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. 

You are provided with the following summarized data covering 2016, 2017, and 2018.

		2016			2017			2018
Cash receipts from sales:
On 2016 sales		$305,760			$146,220			$28,040
On 2017 sales		–0–			342,920			96,510
On 2018 sales								405,570
Cash payments for expenses:
On 2016 expenses		190,320			69,070			25,610
On 2017 expenses		41,750	a		168,780			59,460
On 2018 expenses					40,890	b		223,550

Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the cash basis.

Answer rating: 100% (QA)

Income Statement 2016 2017 Sales 480020 439430 ... View the full answer