In its first year of operations, Sandhill Co$.$ recognized $$34,720$ in service revenue, $$7,440$ of which was on account and still outstanding at year$-$end. The remaining $$27,280$ was received in cash from customers.

$($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?