Hourly wage Annual
income
Difference
between
annual wage
and federal
Difference
between
annual wage
and median
household
income
poverty line
$7.25
$14.500
Federal
minimum
wage
88.00
$16,000
California's
minimum
wage
$55.65
Marketing
managers
S111,300
Police officers
$27.40
$54,800
89.38
Child-care
workers
$18.760

In its first year of operations, sunland company recognized $30,000 in service revenue, $8,100 of which was on account and still outstanding at year-end. the remaining $21,900 was received in cash from customers. the company incurred operating expenses of $18,600. of these expenses, $12,880 were paid in cash; $5,720 was still owed on account at year-end. in addition, sunland prepaid $3,270 for insurance coverage that would not be used until the second year of operations. (a) calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting.