1. In 2015, Dr. Wesley received $300 000 from her patients and paid $170 000 for operating expenses. Additionally she has accounts receivable, unearned service revenue, accrued liabilities, and prepaid expenses as shown below.

	December 31, 2014	December 31, 2015
Accounts Receivable	12 000	9 000
Unearned Service Revenue	0	4 000
Accrued Liabilities	2 000	5 500
Prepaid Expenses	1 800	2 700

1. Determine net income using the cash basis of accounting.

2. Determine net income using the accrual basis of accounting.