Presented below isthe comparative statement of income, prepared on a cash basis, for Mingwei Ltd. for the past two years. The manager is puzzled by the fact that net income was lower in2023than 2022.MINGWEI LTD.Statementof Income, Cash BasisYears EndedDecember 3120232022Service revenue.........................................................................$350,000$365,000ExpensesSalaries expense.................................................................200,000190,000Office expense....................................................................54,00055,000Repairs and maintenance expense.....................................20,00015,000Interest expense..................................................................15,0002,000Total expenses...........................................................................289,000262,000Income before income tax..........................................................61,000103,000Income tax expense...................................................................24,40041,200Net income.................................................................................$ 36,600$ 61,800In talking with the manager, you gather the following information, which was not reflected in the above statements:1.The company borrowed $200,000 on June 1, 2022and repaid the amount with interest on June 1, 2023. The interest rate was 6%. The journal entry to record the repayment on June 1, 2023was:Bank Loan Payable.............................................200,000Interest Expense..................................................12,000Cash.............................................................212,0002.A customer made a deposit of $15,000 on December 1, 2022for services to be performed in January 2023. The journal entry made on December 1, 2022was:Cash....................................................................15,000Service Revenue..........................................15,0003.A bill for $4,000 maintenance work done inDecember 2022was paid on January 15, 2023. The journal entry to record the payment in 2023was:Repairs and Maintenance Expense.....................4,000Cash.............................................................4,000InstructionsAssuming that no adjusting entries were made for the above transactions, prepare a revised comparativestatement of incomefor 2022and 2023. (Income tax is calculated at 40% of income before income tax.)(15marks)