Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting

• Cash received from customers $45,500
• Account receivable $12,700
• Cash paid for expenses $25,000
• Account payable (related to expenses) $2,300
• Prepaid rent for next period $7,000

Which is the correct answer

a. $19,300

b. $30,900

c. $20,500

d. $13,500