Robinson Co. had the following transactions in 2006, its first year of operations.

• Cash sales were $150,000.
• Credit sales were $160,000. Of this, $125,000 was collected from customers in 2006 and the balance will be collected in 2007.
• Paid utilities expense of $32,000 in cash.
• Purchased materials and supplies costing $75,000 with cash. $25,000 of materials and supplies remained on hand at December 31.
• Purchased equipment on January 1 for $50,000. The equipment had a five year estimated useful life and zero salvage value. It is depreciated on a straight-line basis.
• Paid $65,000 in employee wages for work performed in 2006. Owed additional wages of $12,000 at December 31.
• Purchased a two-year fire insurance policy for $36,000 cash on January 1.
• Declared and paid a dividend of $5,000.

Calculate income on a cash-basis and an accrual basis.