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Business, 13.11.2019 01:31 ashiteru123

Vaughn corp. maintains its financial records on the cash basis of accounting. interested in securing a long-term loan from its regular bank, vaughn corp. requests you as its independent cpa to convert its cash-basis income statement data to the accrual basis. you are provided with the following summarized data covering 2019, 2020, and 2021.

2019 2020 2021
cash receipts from sales:
on 2016 sales $279,330 $172,620 $27,710
on 2017 sales –0– 384,420 84,570
on 2018 sales 417,080
cash payments for expenses:
on 2016 expenses 190,150 71,300 22,550
on 2017 expenses 36,140 (a) 162,710 59,250
on 2018 expenses 49,340 (b) 212,270
aprepayments of 2019 expenses.
bprepayments of 2020 expenses.

using the data above, prepare abbreviated income statements for the years 2019 and 2020 on the cash basis.

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