1 (7 marks) Urban Consulting, a building consulting firm has just started its business. The owner of the firm engaged you to prepare yearly financial statements for their first year ended 30 June 2020 on both the cash basis and the accrual basis. You have been provided with the following selected data for the year. 1. During the year, cash payments of $148,400 were made for salaries and other expenses incurred during the period. 2. Salaries owing to employees but not yet paid amount to $5,600. 3. Insurance of $8,400 that will cover the next financial year was prepaid at 30 June. 4. During the year, a total of $175,000 consulting fees was collected for services provided. 5. There were $11,200 in receivables at 30 June 2020 for services performed on credit. 6. On 20 June 2020, a client paid $4,200 in advance for services to be rendered during the next financial year. Required: a. Calculate profit under both the cash basis and the accrual basis. (5 marks) ANSWER a): ** Answer box will enlarge as you type b. Explain in your own words why the profits calculated above are not the same. Which financial statements assumption does this relate to? (2 marks) ANSWER b)