7. In year 1, Hill Company incurred $5,000 of utility expense on account. Hill paid cash for these expenses in year 2. How does the recognition of the expense in year one affect the statement of cash flows for year 1? How does the payment of year 1's expense in year 2 affect Hill's accounting equation in year 2? What is the impact of the year 2 transaction on net income? 8. Which accounts in the horizontal financial statements model are affected by a claims exchange