In its first year of operations, Pharoah Company recognized $ 35,840 in service revenue, $ 7,680 of which was on account and still outstanding at year-end. The remaining $ 28,160 was received in cash from customers. The company incurred operating expenses of $ 20,224. Of these expenses, $ 15,360 were paid in cash; $4,864 was still owed on account at year-end. In addition, Pharoah prepaid $3,072 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 Net Income (b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers