1. Exercise 1-1 (Algo) Accrual accounting (L01-2) Listed below are several transactions that took place during the first two years of operations for the wom of Peter Amounts Billed to clients for services rendered Cash collected from clients Cash disbursements Salaries wid toployees for service rendered during the Utilities Purchase of insurance policy 3100,000 145.000,00 95.00 15.000 335 15,00 $1.5 In addition, you learn that the firm incurred Utility costs of $37500 in year that there were no babies at the end of year 2.00 anticipated bad debts on receivables, and that the insurance policy covers a three your period Required: 1.& 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables tiom Cients that the famond show in its year and year 2 balance sheets prepared according to the accal accounting model 2. Prepare an income statement for each year according to the accrual accounting model Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. y entering your answers in the tabs below. Req 1 and 3 Reg 2 Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the fem would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model (Net cash outflow should be indicated by a minus sign.) 1. s Net operating cash flow Receivables Year 1 (9.000) X $ 15,000 $ Year 2 80,000 35,000 3 $ Reg 2 > Prepare an income statement for each year according to the accrual accounting mode PETE. PETE, AND ROY Income Statements Year 1 Year 2 Revenues 180 000 $ 230,000 Expenses Salaries 95,000 105,000 Utilities 35,000 35.000 Insurance 20.500 20,500 Net income foss) $ 29,500 69 500