Determine profit on cash and accrual bases; recommend method. P3.1A (LO 1) AP Your examination of the records of Southlake Company shows the company collected $85,500 cash from customers and paid $48,400 cash for operating costs during 2024. If Southlake followed the accrual basis of accounting, it would report the following year- end balances: Instructions Accounts payable 2024 2023 $1,310 $2,250 4,230 2,650 Accounts receivable Accumulated depreciation 11,040 10,400 Prepaid insurance Supplies Unearned revenue 1,580 1,250 910 490 1,260 1,480 a. Determine Southlake's profit on a cash basis for 2024. b. Determine Southlake's profit on an accrual basis for 2024. Taking It Further Which method do you recommend that Southlake use? Why?