3. Molly's Auto Detailers maintains its records on the cash basis. During 2018, Molly's collected $70,000 from customers and paid $25,000 in expenses. Depreciation expense of $5,000 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $4,000, prepaid expenses decreased $5,000, and accrued liabilities increased $3,000. Compute Molly's accrual basis net income. (1 point)

3. Molly's Auto Detailers maintains its records on the cash basis. During 2018 , Molly's collected $70,000 from customers and paid $25,000 in expenses. Depreciation expense of $5,000 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $4,000, prepaid expenses decreased $5,000, and accrued liabilities increased $3,000. Compute Molly's accrual basis net income. (1 point)