QS 3-2 Computing accrual and cash income LO C1 In its first year of operations, Roma Company reports the following. Earned revenues of $45,000 ($37,000 cash received from customers). Incurred expenses of $25,500 ($20,250 cash paid toward them). Prepaid $6,750 cash for costs that will not be expensed until next year. Compute Roma's first-year net income under the cash basis and the accrual basis of accounting Cash Basis Accrual Basis Revenues Expenses Net income