You are provided the following information for the Del Campo Consulting Associates. 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.
2019 2018
Service revenue (accrual basis) $250,000 $185,000
Cash collected from clients 97,000 80,000
Operating expenses:
Salary expense (accrual basis) 12,000 16,500
Purchased supplies for cash 4,000 2,500
Purchased supplies on account 1,000 1,500
Depreciation expense 2,000 2,000
Rent paid in cash 7,000 3,000
Prepaid insurance 5,500 0
Requirements:
1. Prepare an income statement for Del Campo for 2019 and 2018 under both the cash and the accrual basis of accounting. 2 Compute operating cash flow for both years under cash and accrual bases. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. a. Use cell references from prior calculations, if applicable. 3. Prepare an income statement for Del Campo for 2019 and 2018 under both the cash and the accrual basis of accounting. (Always use cell references and formulas, including $0 balances, where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.)