home / study / business / accounting / accounting questions and answers / zambrano wholesale corporation maintains its records on a cash basis. at the end of each year ... Your question needs more information to be answered. Review expert comments below. Then, edit your question. Question: Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the... Edit question Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the companys accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2018: Cash receipts: From customers $ 715,000 Interest on note 4,060 Loan from a local bank 85,000 Total cash receipts $ 804,060 Cash disbursements: Purchase of merchandise $ 398,000 Annual insurance payment 6,960 Payment of salaries and wages 218,000 Dividends paid to shareholders 12,000 Annual rent payment 28,000 Total cash disbursements $ 662,960 Selected balance sheet information: 12/31/17 12/31/18 Cash $ 29,000 $ 170,100 Accounts receivable 66,000 100,000 Inventory 88,000 66,000 Prepaid insurance 3,300 ? Prepaid rent 11,800 ? Interest receivable 3,045 ? Note receivable 58,000 58,000 Equipment 140,000 140,000 Accumulated depreciationequipment (44,000 ) (58,000 ) Accounts payable (for merchandise) 114,000 130,000 Salaries and wages payable 20,800 25,600 Notes payable 0 85,000 Interest payable 0 ? Additional information: On March 31, 2017, Zambrano lent a customer $58,000. Interest at 7% is payable annually on each March 31. Principal is due in 2021. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1. On October 31, 2018, Zambrano borrowed $85,000 from a local bank. Principal and interest at 6% are due on October 31, 2019. Annual rent on the companys facilities is paid in advance on June 30. The rental period begins on July 1. Required: 1. Prepare an accrual basis income statement for 2018 (ignore income taxes). (Other expenses should be indicated with a minus sign.) 2. Determine the following balance sheet amounts on December 31, 2018