Portmann Corp. maintains its financial records using the cash basis of accounting. As it would like to secure a long-term loan from its bank, the company asks you, as an independent CA, to convert its cash basis income statement information to accrual basis. You are provided with the following summarized data for 2012,2013, and 2014:

Instructions
Using the information above, prepare abbreviated income statements for the years 2012 and 2013 using:
(a) The cash basis of accounting
(b) The accrual basis of accounting

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2012 2013 2014 Cash receipts from sales: On 2012 sales On 2013 sales On 2014 sales $160,000 355,000 30,000 90,000 408,000 $320,000 Cash payments for expenses On 2012 expenses On 2013 expenses On 2014 expenses 185,000 40,000 67,000 135,000 45,000 25,000 55,000 218,000