The Apollo Company is a catalogue-based retailer. The following describes Apollo’s operations in its first two years of business:

Required
1. Prepare an income statement for each year assuming that Apollo recognizes revenue using the point-ofsale method and assuming that all operating expenses are paid in cash.
Prepare an income statement for each year assuming that Apollo recognizes revenue using the installment method and assuming that all operating expenses are paid in cash.

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Sales (all on account) Cash collections from customers On 2015 sales. On 2014 sales. Cash purchases of merchandise inventory Merchandise inventory-on-hand (year-end) Operating expenses (other than inventory). 2015 2014 $400,000 $600,000 180,000 220,000 240,000 360,000 480,000 120,000 228,000 64,000 88,000