During 2010 Galaxy Corporation made sales of $4,100 (assume all on account) and collected cash of $4,900

Question:

During 2010 Galaxy made sales of $4,100 (assume all on account) and collected cash of $4,900 from customers. Operating expenses totaled $1,400, all paid in cash. At year end, 2010, Galaxy customers owed the company $700. Galaxy owed creditors $1,300 on account.
All amounts are in millions.
1. For these facts, show what Galaxy reported on the following financial statements:
Income statement
Balance sheet
2. Suppose Galaxy had used the cash basis of accounting. What would Galaxy have reported for these facts?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...