E3-30B. (Learning Objective 1: Linking accrual accounting and cash flows) During 20X7, Andromeda Corporation made sales of €4,200 (assume all on account) and collected cash of

€4,800 from customers. Operating expenses totaled €1,400, all paid in cash. At year-end, 20X7, Andromeda customers owed the company €400. Andromeda owed creditors €800 on account.

All amounts are in thousands.

1. For these facts, show what Andromeda reported on the following financial statements:

a. Income Statement

b. Balance Sheet 2. Suppose Andromeda had used the cash basis of accounting. What would Andromeda have reported for these facts?