Quangninh Ltd maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows: Quangninh Ltd Income Statement (Cash Basis) For the Year Ended December 31, 2019 $ 450,000 Cash receipts from customers Cash payments: Salaries and wages $150,000 Taxes 75,000 Insurance 40,000 Interest 25,000 290,000 Net income 1 $160,000 Additional information: Balances at 12/31 2019 2018 Accounts receivable $35,000 $40,000 Salaries and wages payable 28,000 23,000 Taxes payable 18,000 17,500 Prepaid insurance 5,500 6,300 Accumulated depreciation 87,000 75,000 3,000 9,000 Interest payable No plant assets were sold during 2019. Required: (a) Prepare income statement for Quangninh Ltd for the year ended 31/12/2019 base on accrual basic. (7 marks) (b) Explain why net cash flow is different from net income under accrual basic (6 marks) (C) Some people argue that "Statement of cash flows is useless". What are your comment about this? (7 marks)