The following data were taken from the records of Archie and Sons Company at the end of
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Question:
The following data were taken from the records of Archie and Sons Company at the end of fiscal year 2020.
| 12/31/2020 | 12/31/2019 | Increases (Decreases) | |
| Accounts Receivable | 150 | 175 | (25) |
| Allowance for Doubtful Accounts | 1 | 1.5 | (0.5) |
| Inventory | 312 | 250 | 62 |
| Payables (related to inventory) | 190 | 170 | 20 |
| Taxes payable | 50.5 | 100 | (49.5) |
| Deferred tax liability | 23 | 19 | 4 |
In addition the following data are available:
- Sales on account were $492 and cash sales were $1,990.
- Cash purchases of inventory totaled $180 and credit purchases of inventory totaled $1,200.
- Bad Debt Expense for the year is $2.
- All operating expenses besides Bad Debt Expense were paid in cash totaling $850.
- Taxable Income for 2020 was $250 and the applicable tax rate is 35%.
REQUIRED:
Based on the above data, fill in the blanks to complete the following income statements both on an accrual basis and on a cash basis. You do not need to put any numbers in parentheses as the setup is very clear already.
| Cash Basis | Accruals Basis | |
| Sales Revenue | ||
| - Cost of Goods Sold | ||
| - Operating Expenses | ||
| - Income Tax Expense | ||
| = Net Income | xxx | xxx |
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