Manchester Technology maintains its records using cash-basis accounting. Consider the following: - During the year, the company received cash from customers, 33,000 , and paid cash for salaries, 20,600 . - At the beginning of the year, customers owe Manchester 1,200 . By the end of the year, customers owe 4,600 . - At the beginning of the year, Manchester owes salaries of 3,600 . At the end of the year, Manchester owes salaries of 2,300 Determine cash-basis net income and accrual-basis net income for the year. Cash-basis net income & 12,400 Accrual-basis net income &

## Step 1: Understand the given data### The problem provides:- Cash received from customers: - Beginning accounts receivable (customers owe): - Beginning salaries payable (Manchester owes): The cash-basis net income is already calculated as to This increase of represents revenue earned but not yet collected. Add this amount to the cash-basis net income.---## Step 4: Calculate the change in salaries payable### Salaries payable decreased from : This decrease of ) and adjust for the changes: Substitute the values: Simplify: ---