Zambezi and Zoravia are two developing countries with similar populations. The governments of these countries had adopted a similar health care plan about ten years ago and spend about the same dollar amounts on annual health care. When the health care plan was first adopted, the life expectancy of the people of both these countries was approximately 50 years. However, after ten years, Zambezi showed a much higher average life expectancy compared to Zoravia. What, had it happened during this period, would help explain this outcome?

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.