The following data relate to the Jones Company for the year ended December 31, 2011: $80,000 Sales on credit Cost of inventory sold on credit Collections from customers Purchase of inventory on credit Payment for purchases Cash collections for common stock 65,000 60,000 50,000 55,000 30,000 10,000 Dividends paid 10,000 Payment to salesclerk Determine income on an accrual basis. Answer: The following data relate to the Jones Company for the year ended December 31, 2011: Sales on credit Cost of inventory sold on credit $80,000 65,000 Collections from customers 60,000 Purchase of inventory on credit Payment for purchases Cash collections for common stock Dividends paid Payment to salesclerk 50,000 55,000 30,000 10,000 10,000 Determine income on a cash basis