The following table summarizes the balances of assets, liabilities, and equity accounts for ABC Company at the beginning and the end of 2020: Cash Accounts receivable Inventory Prepaid insurance Prepaid rent Office Supplies Equipment Accumulated depreciation-equipment Accounts payable Salary payable Beginning of 2020 ? Dividends Sales revenue earned Cost of goods Sold Salary expense Depreciation expense-equipment Rent expense Insurance expense Office Supplies expense Advertising expense 2,300 12,150 3,250 6,800 4,200 8,000 ? 4,500 2,000 Unearned revenue 6,200 Common stock 19,500 Retained Earnings 8,300 The following table summarizes the flows during the period for ABC Company: 3,000 ? 21,600 4,900 3,800 End of 2020 19,400 2,500 12,000 3,400 6,500 3,700 12,500 10,200 5,400 1,400 6,500 20,600 4,800 1,200 500 700 Required: 1. Compare the accrual basis (net income) to the cash basis (net cash flow from operations) to evaluate ABC's financial performance during 2020. 2. Which basis do you prefer? Explain Why?