During 2020, Organic Foods Inc. made sales of \(\$ 4,000\) (assume all on account) and collected cash of \(\$ 4,100\) from customers. Operating expenses totalled \(\$ 800\), all paid in cash. At December 31, 2020, Organic Foods's customers owed the company \(\$ 400\). Organic Foods owed creditors \(\$ 700\) on account. All amounts are in millions.

1. For these facts, show what Organic Foods Inc. would report on the following 2020 financial statements:

- Income statement

- Balance sheet 2. Suppose Organic Foods had used cash-basis accounting. What would Organic Foods Ltd. have reported for these facts?