Qs 3-2 computing accrual and cash income lo c1 in its first year of operations, roma co. earned $64,000 in revenues and received $56,000 cash from these customers. the company incurred expenses of $35,000 but had not paid $8,100 of them at year-end. the company also prepaid $11,500 cash for costs that will not be expensed until the next year. calculate the first year's net income under both the cash basis and the accrual basis of accounting.