In its first year of operations, Carla Vista Co. recognized $ 26,880 in service revenue, $ 5,760 of which was on account and still outstanding at year-end. The remaining $ 21.120 was received in cash from customers The company incurred operating expenses of $ 15,168. Of these expenses. $ 11,520 were paid in cash: $ 3,648 was still owed on account at year-end. In addition, Carla Vista prepaid $ 2.304 for insurance coverage that would not be used until the second year of operations (a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting Cash Basis Accrual Basis $ 9600 14016 Net Income