Consider the following economic events involving Leon’s. Indicate whether Leon’s would include each item in a calculation of net income using cash accounting and accrual accounting. Provide a brief explanation for your treatment:

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Economic Event Example: Leon's sells merchandise to a customer for cash. a. Leon's sells merchandise to a customer on credit. b. Leon's collects cash for goods that were sold last year. c. Inventory Leon's paid for last year is sold in the current year. d. Dividends are declared and paid to shareholders. e. Leon's purchased and paid for inventory in the current period but the inventory is unsold as of the year-end. f. Leon's depreciates a delivery truck. Net income on the cash basis Yes, because cash is collected from a customer. Net income on the accrual basis Yes, because a sale with a customer has been completed.