Answer and Explanation:
The computation is shown below;
a. The amount of cash collection from customers is
= $45,000 + $600,000 - $20,000
= $625,000
b. The amount of cash paid for salaries is
= $14,000 + $350,000 - $8,000
= $356,000
c, The accrual basis net income is
= $600,000 - $350,000
= $250,000
d. The cash basis net income is
= $625,000 - $356,000
= $269,000