method of accounting. Milkmaid had P600,000 cash basis pretax income for 2014. The following information pertains to Milkmaid for the years ended December 31, 2014 and 2013: 2014 2013 Accounts Receivable P400,000 P200,000 Accounts Payable 150,000 300,000 Under the accrual method, Milkmaid should report in its December 31, 2014 income statement a pretax income of a. P250,000 C. P550,000 d. P650,000 b. P950,000