Hughes Tools Company starts business on January 1, 2020. The following transactions occurred in 2020 11 Total sales equals $90 250 and 80% of these sales were cash sales 12- Inventory costing $55,000 was purchased on account. 3 Cost of goods sold during the year was $45.000. 4 Payments made to suppliers of inventory totaled $35,000. Wages of $34,000 were paid during the year. In addition, wages of $4,500 remained unpaid at year end Supplies costing $5,000 were purchased on account during the year. $700 of the supplies were still unused at the end of the year. Paid $4,500 to suppliers for purchases that were previously made on account 1. Based on the following transactions net income that would be reported under cash basis equals a $72,200 b $-1,300 $1.300 d None of the above Based on the prior transactions, Hughes Tools net income that would be reported under the accrual basis equals a. $90,250 O b. $2,450 O c $6.750 od $1.300