Xavier Sports Inc. sells sporting goods to consumers. The fiscal year ends on December 31. The company carried out the following operations in 2017: a) Payment of $54,200 in salaries for the year 2017; an additional $4,800 will be paid in January 2018 for 2017 salaries. b) Purchase of new sports equipment inventory at a cost of $334,000. The company paid $90,000 in cash, the balance being credited to the Suppliers account. c) Sale of sports equipment for the sum of $410,000; the company collected $340,000, with the remainder going to the Accounts Receivable account. The cost of equipment sold is $287,000. d) Payment of $7,200 for electricity consumed in 2017. e) Receipt of a deposit of $21,000 for an order of new sports equipment that will be delivered to customers in January 2018. f) Receipt of an invoice for $680 for maintenance services received in December 2017. This invoice will be paid in January 2018.

1. Complete the following financial statements.

a) Statement of income under the cash method

b)Statement of income under the accrual method 2. Which method gives more relevant information to investors, creditors or other users? Explain your answer.