The following data relate to McNair Manufacturing's second year of operations. Sales on credit Cash sales to customers Cash collections from credit customers Cost of all inventory actually sold Purchases of inventory on credit $250,000 220,000 100,000 170,000 150,000 140,000 40,000 35,000 20,000 Payment for credit purchases of inventory Wages earned by employees (accrued) Wages paid to employees (previously accrued) Cash dividends paid Required: 1. Calculate cash basis income and accrual basis income. Cash Basis Income Statement Accrual Basis Income Statement Op. Income (net op. cash flow) 145K Op. Income 140K