E3-19. (Cash and Accrual Basis) (LO *7) Wayne Rogers Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Wayne Rogers Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2016, 2017, and 2018. 2016 2017 2018 Cash receipts from sales: On 2016 sales On 2017 sales On 2018 sales $295,000 $160,000 $ 30,000 0355,000 90,000 408,000 Cash payments for expenses: On 2016 expenses On 2017 expenses On 2018 expenses 85,00067,00025,000 40,000 160,000 55,000 45,000 218,000 Instructions (a) Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the cash basis (b) Using the data above, prepare abbreviated income statements for the years 2016 and 2017 on the accrual basis