In its first year of operations, Roma Company reports the following:

Earned revenues of $59,000 ($51,000 cash received from customers).
Incurred expenses of $32,500 ($25,150 cash paid toward them).
Prepaid $10,250 cash for costs that will not be expensed until next year.
Compute Roma's first-year net income under the cash basis and the accrual basis of accounting.