Problem 1-5: The following data relate to Jones Company for the year ended December 31, 2011: • Sales of 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 sales clerk 10,000 a. Determine income on an accrual basis. b. Determine income on a cash basis.