During 2014, Organic Foods Inc. made sales of $4,000 (assume all on account) and collected cash of $4,100 from customers. Operating expenses totaled $800, all paid in cash. At December 31, 2014, Organic Foods customers owed the company $400. Organic Foods owed creditors $700 on account. All amounts are in millions. 1. For these facts, show what Organic Foods Inc. would report on the following 2014 financial statements: • Income statement • Balance sheet 2. Suppose Organic Foods had used cash-basis accounting. What would Organic Foods Ltd. have reported for these facts?

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