Return to the chapter-opening story, which describes Andrea McGinty's business. It's Just Lunch. Suppose your group is opening an It's Just Lunch office in your area. You must make some important decisions-where to locate. how to advertise, and so on-and you must also make some accounting decisions. For example, what will be the end of your business's accounting year? How often will you need financial statements to evaluate operating perfor- mance and financial position? Will you use the cash basis or the accrual basis? When will you account for the revenue that the business earns? How will you account for the expenses? Required Write a report (or prepare an oral presentation, as directed by your professor) to address the following considerations: 1. Will you use the cash basis or the accrual basis of accounting? Give a complete explana- tion of your reasoning. 2. How often do you want financial statements? Why? Discuss how you will use each financial statement. 3. What kind of revenue will you earn? When will you record it as revenue? How will you decide when to record the revenue? 4. Prepare a made-up income statement for It's Just Lunch for the Year ended December 31. 1998. List all the business's expenses, starting with the most important (largest dollar amount and working through the least important (smallest dollar amount). Try to come as close as you can to the actual figures, as follows: Net revenues, $20,175,920: Net income, $2,018.516. 5. Using made-up dollar amounts, prepare all the adjusting entries your business will need at the end of the year. Identify the date of your adjustments.