Please use this data this answer the question below

Question

Please use the following information to answer Questions 13-23, regarding XYZ Corporation: Balance Sheet | as of 12/31/2019 Accounts Payable $5,000 Accounts Receivable $20,000 Cash $10,000 Net Fixed Assets $40,000 Patent $10,000 Prepaid Expenses $2,000 Total Debt $6,000 $2,000 of which is payable within 12 months Balance Sheet | as of 12/31/2020 Accounts Payable $7,500 Accounts Receivable $15,000 Cash $43,000 Net Fixed Assets $43,000 Patent $8,000 Prepaid Expenses $2,500 Total Debt $15,000 $2,000 of which is payable within 12 months . 2020 Income Statement Cost of Sales (COGS) $70,000 Depreciation $10,000 Interest Paid $2,500 Operating Expenses (Excluding Depreciation) Sales $150,000 $47,500 Outstanding Shares of XYZ Corporation | 5000 XYZ Corp uses accrual accounting, but determines taxable income based on cash profit. Convert the accrued earnings before taxes from Question 14 to cash profit. Use the table below and knowing that a decrease in A/R increases your cash profit, an increase in A/P increases your cash profit, and an increase in prepaid expenses decreases your cash profits. ACCRUAL TO CASH ADJUSTMENTS ACCRUAL INCOME PER BOOKS* = $20,000 es ADJUSTMENTS (enter appropriate year in blanks to calculate adjustments-see problem statement) A/R 2019 Deduct A/R 2020 A/P 2020 Deduct A/P 2019 PPD Expenses Deduct PPD Expenses = Total Deferral Adjustments Book Cash Income for Tax Return *Note: Accrual Income Per Books is simply another way to say Accrued Earnings Before Taxes. A/R is Accounts Receivable A/P is Accounts Payable Accrual income is adjusted to cash according to the changes in A/R, A/P and Prepaid Expenses. These are known as Deferral Adjustments. Enter the appropriate year to calculate according to whether the change is cash positive (increases cash) or cash negative (decreases cash)