I have to prepare a presentation on this problem, but I feel like I don't understand how to solve it.

Can someone help me?

In its first year of operations, Blossom Company recognized $31,700 in service revenue, $6,700 of which was on account and still outstanding at year-end. The remaining $25,000 was received in cash from customers. The company incurred operating expenses of $16,400. Of these expenses, $12,220 were paid in cash; $4,180 was still owed on account at year-end. In addition, Blossom prepaid $2,390 for insurance coverage that would not be used until the second year of operations. (a) Calculate the first years net earnings under the cash basis of accounting, and the first years net earnings under the accrual basis of accounting. Cash Basis Accrual Basis Net Income $enter net income in dollars $enter net income in dollars (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers? select between cash and accrual basis of accounting