Stanley and Jones Lawn Service Company (S&J) maintains its books on a cash basis. However, the company recently borrowed $190,000 from a local bank and the bank requires S&J to provide annual financial statements prepared on an accrual basis. During 2018, the following cash flows were recorded: Cash collected from customers $ 410,000 Cash paid for: Salaries $ 189,000 Supplies 34,000 Rent 18,000 Insurance 8,000 Miscellaneous 29,000 278,000 Net operating cash flow $ 132,000 You are able to determine the following information about accounts receivable, prepaid expenses, and accrued liabilities: January 1, 2018 December 31, 2018 Accounts receivable $ 30,000 $ 26,000 Prepaid insurance 0 2,900 Supplies 1,900 3,000 Accrued liabilities (for miscellaneous expenses) 3,300 4,600 In addition, you learn that the bank loan was dated September 30, 2018, with principal and interest at 6% due in one year. Depreciation on the companys equipment is $19,000 for the year. Required: Prepare an accrual basis income statement for 2018. (Ignore income taxes.)