Nits first year of operations, pharoah company recognized $31,000 in service revenue, $6,900 of which was on account and still outstanding at year-end. the remaining $24,100 was received in cash from customers. the company incurred operating expenses of $16,900. of these expenses, $13,770 were paid in cash; $3,130 was still owed on account at year-end. in addition, pharoah prepaid $3,200 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.

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.