as per cash basis,revenues and expenses are recognised as and when cash is received or paid,
in 2014, net income= total cash receipt-total cash pmt=105560-71267=$34293.
B) as per accrual basis, it's recognised as and when they are earned or incurred,
in this case, revenue earned in 2014=105560-27878(earned in 2013,so excluded)+45699(earned in 2014,so included)=123381,
expense incurred in 2014=71267-30240(incured in previous yr,hence excluded from total)+38312(incrd in 2014,so included)=79339,
hence ,net income=revenue earned-expenses incurred=123381-79339=$44042.
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