In its first year of operations, Roma Company reports the following - Earned revenues of $64,000 ($56,000 cash received from customers) . Incurred expenses of $35.000 ($26.900 cash paid toward them) Prepaid $11,500 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 Accrual Basis Cash Basis $ 56,000 S Revenues Expenses Net income 64,000 (35,000)