S3-15. (Learning Objective 4: Preparing the financial statements) Suppose Hawk Sporting Goods Company reported the following data at March 31, 20X8, with amounts in thousands: Retained earnings, March 31, 20X7 ...... Accounts receivable....... Net revenues Total current liabilities.. All other expenses......... Other current assets ...... Other assets........... $ 4,000 37,800 188,000 48,000 24,300 6,400 31,600 Cost of goods sold. Cash.... Property and equipment, net ... Share capital. Inventories Long-term liabilities Dividends. $142,500 1,700 7,500 30,000 25,000 8,000 1,200 Use these data to prepare Hawk Sporting Goods Company's Income Statement for the year ended March 31, 20X8; statement of changes in equity for the year ended March 31, 20X8; and classi- fied Balance Sheet at March 31, 20X8. Use the report format for the Balance Sheet. Draw arrows linking the three statements. E3-31B. (Learning Objective 1: Linking accrual accounting and cash flows) During 20X7, Valley Sales, Inc., earned revenues of 690,000 on account. Valley collected 650,000 from customers during the year. Expenses totaled 500,000, and the related cash payments were 440,000. Show what Valley would report on its 20X7 Income Statement under the a. cash basis. b. accrual basis. Compute net income under both bases of accounting. Which basis measures net income better? Explain your