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In its first year of operations, Roma Company reports the following: . Incurred expenses of $28,500 ($22,350 cash paid toward them) . Prepaid $8,250 cash

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In its first year of operations, Roma Company reports the following: . Incurred expenses of $28,500 ($22,350 cash paid toward them) . Prepaid $8,250 cash for costs that will not be expensed until next year. Compute the company's first-year net income under both the cash basis and the accrual basis of accounting. Cash Basis Accrual Basis Revenues Expenses Net income

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