In its first year of operations, Fresh Food for Thought earned $69400 in sales revenue. Of that amount, $10000 was on account and the remainder, $59400, was collected in cash from customers. The company incurred operating expenses totalling $24800, of which $5000 was paid in cash. At year-end, expenses of $19800 were still owed on account. In addition to the above, Fresh Food for Thought prepaid $2400 for insurance coverage that covered the last half of its first year of operations and the first half of its second (i.e. next) year of operations. The company expects to owe $3500 of income tax relating to its first year of operations when it files its corporate income tax return after year-end but has not yet made any payments to the government. Required: 1. What was the company's net income in its first year of operations under the accrual basis of accounting