Question 1

Flint Corp. maintains its financial records on the cash basis of accounting. Interested in securing a long-term loan from its regular bank, Flint Corp. requests you as its independent CPA to convert its cash-basis income statement data to the accrual basis. You are provided with the following summarized data covering 2016, 2017, and 2018.

		2016			2017			2018
Cash receipts from sales:
On 2016 sales		$268,730			$169,340			$28,890
On 2017 sales		0			353,540			89,200
On 2018 sales								448,490
Cash payments for expenses:
On 2016 expenses		190,170			73,370			26,020
On 2017 expenses		40,140	a		144,470			55,230
On 2018 expenses					47,140	b		223,220

^aPrepayments of 2017 expenses. ^bPrepayments of 2018 expenses.

(b) ta above, prepare abbreviated ino 2017 on the accrual basis. (Enter loss using either a negative sign preceding the number eg.-45 or parent ntheses e.g. (45).) FLINT CORP Income Statement (Accrual Basis) 2016 2017