In its first year of operations, Ivanhoe Company recognized $26,320 in service revenue, $5,640 of which was on account and still outstanding at year-end. The remaining $20,680 was received in cash from customers. The company incurred operating expenses of $14,852. Of these expenses, $11,280 were paid in cash; $3,572 was still owed on account at year-end. In addition, Ivanhoe prepaid $2,256 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. (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers