Gerald Company had the followi

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Gerald Company had the following account balances for 2021.

	December 31	January 1
Accounts payable	500,000	650,000
Inventory	300,000	250,000
Accounts receivable	800,000	900,000
Prepaid expenses	400,000	600,000

All sales and purchases of inventory were on account.
Depreciation expense of P900,000 was recognized during 2021.
Equipment was sold during 2021 and a gain of P300,000 was recognized.

The entity provided the following cash flow information for 2021:

Cash collected from customers	9,500,000
Cash paid to suppliers	4,100,000
Cash paid for other expenses	1,400,000

What is the net income under accrual basis?

What is the net income under cash basis?

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