Sales $366,000 Year 1 Year 2 Year 3 $90.000 $$90.000 Equipment $100,000 $0 $0 Salaries and wages 50,000 50,000 50,000 Advertising 5,000 5,000 5,000 Rent and utilities 36,000 36,000 36,000 Net income (loss) $175,000 $(1,000) $(1,000) Equipment was purchased at the beginning of Year 1 for $100,000 and is expected to last for three years and then to be worth $1,000. Required: 1. Convert the income statements for each of the three years to the accrual basis. Indicate a net loss with a minus sign. Hathaway Health Club Income Statements Sales Expenses: Depreciation Salaries and wages Advertising Rent and utilities. Total expenses Net income (loss) Year 1 Year 2 Year 3 1000000