In its first year of operation, Sheridan Company recognize $30,000 in service revenue, $7, 200 of which was an account and still outstanding at year end. The remaining $22, 800 was received in cash from customers. The company incurred operating expenses of $16, 600. Of these expenses, $13, 520 were paid in cash; $3, 080 was still on account at year-end. In addition, Sheridan prepaid $2, 650 for insurance coverage that would not be used until the second year of operations. Calculate the first year's net earnings under the cash basis of accounting, and the first year's set earnings under the basis of accounting. Which basis of accounting (cash or accrual) provides more useful information for decision-makers