Accrual accounting [LO1-2] Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy Amounts billed to clients for services rendered ok Cash collected from clients Cash disbursements 1 ences Salaries paid to employees for services rendered during the year, Utilities Purchase of insurance policy Year 1 Year 2 $180,000 $230,000 165,000 195,000 95,000 105,000 45,000 32,500 61,500 In addition, you learn that the firm incurred utility costs of $37,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. Required: 1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model 2. Prepare an income statement for each year according to the accrual accounting model. Complete this question by entering your answers in the tabs below. Req 1 and 31 Req 2 Prev 1 of 6 Next > In addition, you learn that the firm incurred utility costs of $37,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. Check my work Required: 1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. 2. Prepare an income statement for each year according to the accrual accounting model. Complete this question by entering your answers in the tabs below. ces Req 1 and 31 Req 2 Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. (Net cash outflows should be indicated by a minus sign.) Year 11 Year 2 1. Nel operating cash flow $ (9,000) $ 45.000 3. Receivables $ 165,000 $ 195,000 Req 2 > Sinest 1 Required: Help Save & Exit Submit Check my work 1. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. 2. Prepare an income statement for each year according to the accrual accounting model. 56 nts Complete this question by entering your answers in the tabs below. ellook Req 1 and 3 Req 2 Hint Print References Prepare an income statement for each year according to the accrual accounting model. PETE PETE, AND ROY Income Statements Revenues Expenses: Salaries Utilities Insurance Net income (loss) Year 1 Year 2 Ben 1 and 3