Tony Falk, the owner of Westwood Store, has not maintained an adequate accounting system and has asked you to help him prepare an income statement for the business. Based on information he has provided, the following balance sheet information is now available:

Also, the store's record of cash receipts and disbursements shows the following:

Under the assumption that the store makes all purchases and sales on credit, prepare calculations to determine the 1990 amounts of its accrual basis sales, purchases, and wages expense. Then prepare an accrual basis income statement for 1990 .

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Cash.. Accounts receivable Merchandise inventory Equipment (net after depreciation). Total assets... Accounts payable Accrued wages payable Tony Falk, capital Total liabilities and owner's equity December 31 1989 1990 $ 3,750 $12,150 9,300 10,950 45,600 42,750 37,200 30,900 $95,850 $96,750 $13,950 $12,300 450 750 81,450 83,700 $95,850 $96,750