Exercise 2-18 (Algo) Cash versus accrual accounting [LO2-9] S&J Lawn Service Company maintains its books on a cash basis. However, the company recently borrowed $220,000 from a local bank, and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2024, the following cash flows were recorded: Cash collected for: Services to customers Cash paid for: Salaries Supplies Rent Insurance Miscellaneous Net operating cash flow res $440,000 $ 192,000 37,000 21,000 11,000 32,000 293,000 $ 147,000 You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: Accounts receivable Prepaid insurance Supplies Accrued liabilities (for miscellaneous expenses) December 31, January 1, 2024 2024 $ 33,000 $ 27,500 0 2,200 3,200 3,150 3,600 5,200 In addition, you learn that the bank loan was dated September 30, 2024, with principal and Interest at 6% due in one year. Depreciation on the company's equipment is $11,000 for the year. Required: Prepare an accrual basis income statement for 2024. (Ignore income taxes.)