4. NCH Company had the following transactions that took place during the first two years of operations: Year 1 Year 2 Cash Collected from Customers on credit sales $140,000 $245,000 Cash Disbursements: Rent 40,000 -0- Salaries ** 20,000 40,000 Advertising 15,000 25,000 Utilities 5,000 5,000 Office Equipment ** 25,000 -0- 2 Customers owed the company $60,000 and $85,000 at the end of year 1 and 2 respectively. * The rent payment was for a two-year period ** At the end of year 1, NCH owed $5,000 of salaries to its employees. *** NCH estimates that the office equipment has a 5-year useful life. There were no liabilities at the end of year 2. Using the above information, please calculate NCH's accrual basis net income at the end of year 1? A. $235,000 B. $275,000 C. $110,000 D. $130,000 E. None of the above 5. Continue with the previous NCH fact pattern and calculate NCH's accrual basis net income at the end of year 2? A. $180,000 B. $195,000 C. $200,000 D. $175,000 E. None of the above