The following data relate to Jones Company for the year ended December 31, 2009:
Sales on credit ................ $80,000
Cost of inventory sold on credit ......... 65,000
Collections from customers ........... 60,000
Purchase of inventory on credit ........ 50,000
Payment for purchases ............ 55,000
Cash collections for common stock ....... 30,000
Dividends paid .............. 10,000
Payment to salesclerk ............ 10,000
Required
a. Determine income on an accrual basis.
b. Determine income on a cash basis.