Blackcom Company had sales of $$259,000$ during $20$X$0,$ all on account. Accounts receivable for the year grew from $$45,000$ on January $1$ to $$124,000$ on December $31.$ Expenses for the year were $$174,000,$ all paid in cash.

Read the requirements.

Requirement $1.$ Compute Blackcom's net income on the cash basis of accounting. $($Use parentheses or a minus sign for net losses.$)$

Requirement $2.$ Compute Blackcom's net income on the accrual basis of accounting. $($Use parentheses or a minus sign for net losses.$)$

Net income $($loss$)$

Requirement $3.$ Which basis gives a better measure of Blackcom's performance for $20$X$0?$ Why?

The gives a better measure of Blackcom's performance. It because Blackcom has created value from