Case 1.

Ronald Company, which began operations on January 1, 2X15, has elected to use a cash basisaccounting for tax purposes and accrual basis for financial statements. The entity reported sales ofP1,750,000 and P800,000 in tax returns for the years ended December 31, 2X16, and 2X15, respectively.

? What amount should be reported as sales in the income statement for 2X16? _______________

Case 2.

Cordero Company maintained the accounting records on a cash basis but restated the financialstatements to the accrual method of accounting. The entity had P6,000,000 in cash basis pretaxincome for 2X16.

The entity provided the following information on December 31, 2X16

2X16 2X15

Accounts receivable 4,000,000 2,000,000

Accounts payable 1,500,000 3,000,000

? Under the cash basis, what amount of income before tax should be reported in the 2X16 incomestatement? _________________

Case 1. Ronald Company, which began operations on January 1, 2X15, has elected to use a cash basis accounting for tax purposes and accrual basis for nancial statements. The entity reported sales of P1,?50.000 and P300000 in tax returns for the years ended December 31, 2X16. and 2X15. respectively. a What amount should be reported as sales in the income statement for 2X16? Case 2. Cordero Company maintained the accounting records on a cash basis but restated the financial statements to the accrual method of accounting. The entity had 96,000,000 in cash basis pretax income for 2X16. The entity provided the following information on December 31, 2X16 2X16 2X15 Accounts receivable 4,000,000 2,000,000 Accounts payable 1 500.000 3,000,000 - Under the cash basis. 1lvhat amount of income before tax should be reported in the 2X16 income statement