Reporting Cash Basis versus Accrual Basis Income Payson Sports, Inc., sells sports equipment to customers. Its fiscal year ends on December 31. The following transactions occurred in 2012: a. Purchased $314,000 of new sports equipment inventory; paid $90,000 in cash and owed the rest on account. b. Paid employees $164,200 in wages for work during the year; an additional $4,800 for 2012 wages will be paid in January 2013. c. Sold sports equipment to customers for $630,000; received $520,000 in cash and the rest on account. The cost of the equipment was $387,000. d. Paid $17,200 cash for utilities for the year. e. Received $35,000 from customers as deposits on orders of new winter sports equipment to be sold to the customers in January 2013. f. Received a $1,740 bill for December 2012 utilities that will be paid in January 2013. Required: 1. Complete the following statements