+ Question 2 [10 points]: Financial statements are prepared on the accrual rather than the cash basis of accounting, which means that revenues are recognized when earned and expenses are recognized when incurred, regardless of when the actual cash inflows and outflows occur. Based on accrual accounting, please illustrate statement of cash flow and income statement regarding the following case (please write your answers in numbered cells (there are more cells than you need) (show your calculation like A*B-C etc.). Esra decided to sell painted mugs for $30 each and she can buy mugs for $10 each. She purchased 200 mugs. She also has $1 of painting fee per mug. At the end of the week, all mugs are painted and ready. for sale. She was able to sell only 100 mugs. However, out of the 100 mugs, only 25 are paid in cash. Remaining 75 are paid on credit card. Number Statement of cash flow Cash inflows (explanation) $ amount 1 2 3 4 1 2 3 Total cash inflows Cash outflows (explanation) 4 Number 1 2 3 4 1 2 3 4 Total cash outflows Net cash inflow (outflow) Income Statement $ amount Revenues(explanation) Total revenues Expenses(explanation) Total expenses Net income