XYZ Corporation had revenues of $200,000 in its first year of operations. The company has not collected on $30,000 of its sales and still owes $25,000 on $70,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $35,000 in salaries. Owners invested $20,000 in the business and $30,000 was borrowed on a five-year note. The company paid $3,000 in interest that was the amount owed for the year, and paid $8,000 for a two-year insurance policy on the first day of business

a. Compute the cash balance at the end of the first year for XYZ Corporation. (ignore income taxes)

b. Compute the accrual based income for first year for XYZ Corporation. (Ignore income taxes)