During 2012, Orion Corporation made sales of $4,400 (assume all on account) and collected cash of $4,600 from customers. Operating expenses totaled $1,300, all paid in cash. At year end, 2012, Orion customers owed the company $700. Orion owed creditors $1,200 on account. All amounts are in millions.
1. For these facts, show what Orion reported on the following financial statements:
Income statement
Balance sheet
2. Suppose Orion had used the cash basis of accounting. What would Orion have reported for these facts?