Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting.

Cash received from customers $44,000

Accounts receivable 12,000

Cash paid for expenses 26,000

Accounts payable (related to expenses) 3,000

Prepaid rent for next period 7,000

a. $18,000

b. $27,000

c. $20,000

d. $11,000

the answer is B, how do you solve this?