In the first year of operation, Jay's Co. earned $39000 in revenues and receive $33,000 cash from these customers. The company incurred expenses of $22,500 but had not paid $2,250 of them at year end. Jay's Co. also prepaid $3,750 cash for expenses that would be incurred the next year. calculate the first year's net income under both the cash basis and the acctual basis of accounting.