Based on the following transactions, calculate the revenues, expenses and net income that would be reported

(a) On the cash basis

(b) On the accrual basis:

i. Credit sales to customers totalled $35,000.

ii. Cash sales totalled $115,000.

iii. Cash collections on account from customers totalled $30,000.

iv. Cost of goods sold during the period was $85,000.

v. Payments made to suppliers of inventory totalled $75,000.

vi. Wages of $32,500 were paid during the year. In addition, wages of $2,500 remained unpaid at year end; there were no wages unpaid at the beginning of the year.

vii. Halfway through the year, a one-year insurance policy was purchased at a cost of $1,000.