On May 1,2020 , RingsLord Inc. purchased a two-year insurance policy for $48,000 with coverage to begin immediately. What is the amount of Prepaid Insurance that appears on the company's balance sheet on December 31, 2021? $8,000 $32,000 $16.000 $40,000 In 2022, Pivot LLC sold merchandise totaling $540,000, of which $195,000 was collected in cash and $345,000 sold on account. Of the $345,000 on account, 35\% was collected in cash from customers in 2022. The company incurred expenses of $235,000 and made related cash payments of $70,000. Compute Net Income (Loss) under (a) cash basis accounting and (b) the accrual basis accounting