Financial Reporting Theory Cash vs. Accrual "You are provided the following information for the Del Campo Consulting Associates. Assume that all supplies purchased were used in operations in the year of purchase. Rental payments pertain to rental space used in the year of payment. " 2019 2018 Service revenue (accrual basis) $250,000 $185,000 Cash collected from clients 80,000 97,000 Operating expenses: Salary expense (accrual basis) 12,000 16,500 Purchased supplies for cash 4,000 2,500 Purchased supplies on account 1,500 1,000 Depreciation expense 2,000 2,000 Rent paid in cash 7,000 3,000 Prepaid insurance 5,500 0 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Requirements 1 Prepare an income statement for Del Campo for 2019 and 2018 under both the cash and the accrual basis of accounting. a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. c. If a cell should have a $0 balance and it cannot be linked from the INSTRUCTIONS tab enter "0" in the appropriate cell. 2 "Compute operating cash flow for both years under cash and accrual bases. " a. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. b. Use cell references from prior calculations, if applicable. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open c. Click Upload button under step 3 d. Click Submit button under step 4 Viewing Results 1 Click on Results tab in MyAccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Card 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback

A E 1. Prepare an income statement for Del Campo for 2019 and 2018 under both the cash and the accrual basis of accounting. (Always use cell references and formulas, including $0 balances, where appropriate to receive 2 full credit. If you copy/paste from the Instructions tab you will be marked wrong.) 3 Accrual Basis Cash Basis 4 2019 2018 2019 2018 5 6 7 Operating expenses: 8 9 10 11 12 13 Operating income 14 15 2. Compute operating cash flow for both years under cash and accrual bases. 16 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 17 18 2019 2018 19 Net cash flow from operations 20 LO A E 1. Prepare an income statement for Del Campo for 2019 and 2018 under both the cash and the accrual basis of accounting. (Always use cell references and formulas, including $0 balances, where appropriate to receive 2 full credit. If you copy/paste from the Instructions tab you will be marked wrong.) 3 Accrual Basis Cash Basis 4 2019 2018 2019 2018 5 6 7 Operating expenses: 8 9 10 11 12 13 Operating income 14 15 2. Compute operating cash flow for both years under cash and accrual bases. 16 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 17 18 2019 2018 19 Net cash flow from operations 20 LO