"Farmer & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. Required: Prepare an accrual basis income statement for 2024. (Place your Accrual Income Stmt in Box to the right) Show all calculations. The cash basis income statement, along with additional information, follows:"

Farmer & Associates
Income Statement (Cash Basis)
For the Year Ended December 31, 2024
Cash receipts from customers		$350,000
Cash payments:
Wages	$150,000
Taxes	65,000
Insurance	40,000
Interest	25,000	280,000
Net income		$70,000
Additional information:
	Balances at 12/31
	2024	2023
Accounts receivable	$50,000	$30,000
Wages payable	15,000	20,000
Taxes payable	14,000	19,000
Prepaid insurance	8,000	4,000
Accumulated depreciation	95,000	75,000
Interest payable	3,000	9,000
No plant assets were sold during 2024.