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  3. the following data were taken from the records of

The following data were taken from the records of Archie and Sons Company at the...

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Accounting

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:

  1. Sales on account were $492 and cash sales were $1,990.
  2. Cash purchases of inventory totaled $180 and credit purchases of inventory totaled $1,200.
  3. Bad Debt Expense for the year is $2.
  4. All operating expenses besides Bad Debt Expense were paid in cash totaling $850.
  5. 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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