Accrual-Basis Accounting versus Cash-Basis Accounting

The data below is for Jones Company. Determine income before taxes for 2016 using the cash-basis and the accrual-basis.

November 2015: Purchased merchandise inventory on credit for $225,000

January 2016: Paid suppliers of merchandise inventory $170,000

August 2016: Sold merchandise inventory purchased in November 2015 for $350,000

September 2016: Collected $150,000 from credit sales in August 2016

January - December 2016: Paid employees $80,000