Near the end of its first year of operations, December 31, 2021, Sunland Designs Ltd. approached the local bank for a $21,600 loan and was asked to submit financial statements prepared on an accrual basis. Although the company kept no formal accounting records, it did maintain a record of cash receipts and payments. The following information is available for the year ended December 31: Cash Payments Cash Receipts $ 19,100 145,700 Issue of common shares Fees earned Equipment Supplies Rent Insurance Income tax Advertising Salaries Dividends declared $ 35,400 7.700 20.860 3,840 5,500 7.200 61.900 9,800 $152,200 $164.800 Additional information: 1. 2. 3. 4. Fees from design work earned but not yet collected amounted to $2,200. The equipment was purchased at the beginning of January and has an estimated six-year useful life. The company uses straight-line depreciation. Supplies on hand on December 31 were $1,140. Rent payments included a $1,560 per month rental fee and a $2,140 deposit that is refundable at the end of the two-year lease. (Hint: Use the Prepaid Rent account for the refundable deposit.) The insurance was purchased on February 1 for a one-year period expiring January 31, 2022. Salaries earned for the last four days in December and to be paid in January 2022 amounted to $3,050. At year end, it was determined that an additional $7,400 is owed for income tax. 5. 6. 7. Calculate total revenue, total expense, and net income that would be reported if Sunland Designs used the cash basis of accounting. Total revenue $ Total expense $ Cash-based net income $