Starrs Bakery started 12 months ago as a supplier of gluten-free desserts to restaurants all over the province. During its first year of operations it earned $62,000 in revenues and incurred $51,000 in expenses. The business collected $58,000 from its customers and paid all but $2,500 to its suppliers. Starrs also prepaid $7,500 for prepaid rent and other expenses for the next year. Calculate the net income under the cash basis and then under the accrual basis.