The following cash-basis income statement has been prepared for the first year o

The following cash-basis income statement has been prepared for the first year of business.
Smart Mail Inc.Statement of Cash Receipts and ExpendituresFor the Year Ending December 31 Year 1Cash Receipts from Sales of Merchandise$25000Less:Cash Expenditures for Merchandise and ServicesMerchandise$10000Salaries5000Rent 7000Total Cash Expenditures 22000Excess of Cash Receipts over Cash Expenditures$ 3000
At
year-end the firm had inventory with a cost of $2000 remaining. Also
customers owed $1000 for goods that had already been delivered. The
utilities for December were $500 and were billed to but not yet paid by
the company. The rent of $3500 for January Year 2 was paid in
December Year 1.
Required:Prepare an accrual-basis income statement for the year.