The following data relate to Rabbit Company for the year ended December 31, 2019. Collections from customers 200,000 Payment for purchases 150,000 Payment for selling expenses 25,000 Sales on credit $250,000 Cost of inventory sold on credit 130,000 Selling expenses (accrual basis) 20,000 Purchase of inventory on credit 140,000 Instructions: . 1. Calculate the net income if Rabbit Company uses the cash basis. (1.5 marks) 2. Calculate the net income assuming Rabbit Company uses the accrual basis. (1.5 marks) Paranranh