Interpretation: NetSolutions is in trouble with declining revenues and increasing expenses, which generated a net loss. This suggests that NetSolutions may not be able to continue as a viable company without significant operational changes. NetSolutions reported December accrual net income of $4,055 in Exhibit 20, while under the cash basis of accounting, it would have reported a net loss of $(935). a. Why are the accrual- and cash-basis net incomes different?