QS $3-2($Algo$)$ Computing accrual and cash income LO C$1$

In its first year of operations. Roma Comparyy reports the following

Eamed revenues of $$53,0001$$$45,000$ cash received from customers$)$

Incurred expenses of $$29\mathrm{.}500($ $$23\mathrm{.}050$ cash paid toward theml.

Prepaid $$8750$ cash for costs that will not be expensed untir next year

Compute Roma's firstyear net income under the cash basis and the accrual basis of accounting.