Question #3. (20 marks) Penultimate Corporation uses cash basis accounting. You are to convert its cash basis 1/S to accrual basis. You are provided with the following summarized data for 2016, 2017, and 2018. 2016 2017 2018 Cash receipts from sales: On 2016 sales On 2017 sales On 2018 sales $320,000 0 $160,000 355,000 0 $ 30,000 90,000 408,000 0 2016 2017 2018 Cash payments for expenses: On 2016 expenses On 2017 expenses On 2018 expenses $185,000 40,000 0 $ 67,000 135,000 45,000 $ 25,000 55,000 218,000 Required: Prepare abbreviated income statements for the years 2016 and 2017 using: a. Cash basis accounting (10 marks) b. Accrual basis accounting (10 marks)