Consider the following financial statements about SYRIA Co. for the current year 2019

I/S for the year ended Dec. 31, 2019

Sales	$24,000
CGS	15,000
Operating expenses	6,000
Profit from operations (EBIT)	3,000
Interest expense	300
EBT	2,700
Tax expense	900
NI	$ 1,800

Additional information:

Operating expenses include $225 of depreciation expense and a $300 impairment loss on equipment.

A/R increased by $570.

Inventory decreased by $150.

Prepaid expenses related to operating expenses increased by $120.

A/P decreased by $540.

Accrued liabilities related to operating expenses decreased by $270.

Interest payable decreased by $30.

Unearned revenue received from customers decreased by $51.

Income tax payable increased by $60.

Required:

a.

Prepare the cash-basis income statement.

b.

Reconcile the accrual-basis NI to the cash-basis NI