Horned Frogs Fine Cooking maintains its books using cash-basis accounting. However, the company recently borrowed $50,000 from a local bank, and the bank requires the company to provide annual financial statements prepared using accrual-basis accounting as part of the creditworthiness verification. During 2024, the company records the following cash flows:

You are able to determine the following information:

Required:
Prepare an accrual-basis income statement for December 31, 2024, by calculating accrual-basis revenues and expenses.

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Cash collected from customers Cash paid for: Salaries Supplies Repairs and maintenance Insurance Advertising Net cash flows $23,000 9,000 8,000 4,000 6,000 $65,000 50,000 $15,000