Create an accrual-basis income statement using the information provided in Paul's Premium Pillow: Assume an income tax rate of 20%. (Hint: Paul only has one operating expense!) = Gross Margin Operating Expenses = Income Before Taxes = Net Income Paul Premium Pillows Income Statement For the Period Ending December 31st, Current Year Sales Revenue Cost of Goods Sold 260000 150000 10000 10000

Paul's Premium Pillows has the following events occur during the current year. a. Paul paid his employees $90,000 cash for work done in the current year. He also owes an additional $10,000 for work done this year, which he plans to pay at the beginning of next year. This is his first time making a journal entry related to wages this year. b. Paul purchases premium pillow inventory for $300,000. He paid for 80% of the amount using cash; the remaining 20% will be paid on account. c. Paul purchases a TV advertisement during the current year, costing $20,000 cash. The advertisement is planned to run on the first Husky game of next year. d. Paul sold some pillow inventory for $375,000 cash during the current year. $260,000 of this inventory was fully shipped to the customer. The remaining amount represents orders placed by customers that will not ship out until next year. The cost of the shipped pillows was $150,000. 1. If Paul used the accrual basis, total Revenues would be 2. If Paul used the accrual basis, total Expenses would be 3. If Paul used the cash basis, total Revenues would be 4. If Paul used the cash basis, total Expenses would be Create an accrual-basis income statement using the information provided in Paul's Premium Pillow Assume an income tax rate of 20%. (Hint: Paul only has one operating expense!)