2. ABC Company uses cash-basis accounting for its records. During 2017, ABC collected $400,000 from its customers, made payments of $300,000 to its suppliers for inventory (e.g "Purchases" account), and paid $140,000 for operating costs. ABC wants to prepare accrual-basis financial statements. In gathering information for the accrual-basis financial statements, ABC discovered the following: Customers owed ABC $45,000 at the beginning of 2017 and $55,000 at the end of 2017 ABC owed suppliers $20,000 at the beginning of 2017 and $28,000 at the end of 2017 ABC's beginning inventory was $40,000 and its ending inventory was $44,000. What should ABC's Gross Profit be on the accrual basis? Question 2 HINT: Do you remember the COGS formula? As a reminder, here it is: Beginning Inventory