Question 4 of 10 3,09/5 T! Liabilities and Stockholders' Equity *1 2 Current Attempt in Progress In its first year of operations, Sunland Company recognized $ 23,520 in service revenue, $ 5,040 of which was on account and still outstanding at year-end. The remaining $ 18,480 was received in cash from customers. The company incurred operating expenses of $ 13,272. Of these expenses, $ 10,080 were paid in cash: $3,192 was still owed on account at year-end. In addition, Sunland prepaid $ 2,016 for insurance coverage that would not be used until the second year of operations (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? e Textbook and Media