In its first year of operations, Cynthia Corp. earned $55,500 in service revenue. Of that amount, $8,200 was on account and the remainder, $47,300, was collected in cash from customers. The company incurred various expenses totalling $28,800, of which $25,300 was paid in cash. At year end, \$3,500 was still owing on account. In addition, Cynthia prepaid \$2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. Cynthia expects to owe $3,000 of income tax when it files its corporate income tax return after year end. (a) Calculate the first year's net income under the accrual basis of accounting