You are provided the following information for the Del Campo Consulting Associates.

Required

Assume that all supplies purchased were used in operations in the year of purchase. Rental payments pertain to rental space used in the year of payment.
a. Prepare an income statement of Del Campo for 2019 and 2018 under both the cash and the accrual basis of accounting.
b. Compute operating cash flow for both years under cash and accrual bases.

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2018 2019 Service revenue (accrual bas s) $250,000 $185.000 97.000 Cash coilected from clients 80,000 Operating expenses: Sa ary expense (accrual basis) 12,000 16.500 Purchased supplies for cash 4,000 2,500 Purchased supplies on account 1,500 1.000 Depreciation expense 2,000 2,000 Rent paid in cash 7,000 3,000 -0- Prepaid insurance 5,500