In addition, you learn that the firm incurred utility costs of $35,000 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. Calculate the net operating cash flow for years 1 and 2. 2. Prepare an income statement for each year similar to Illustration 1-4 according to the accrual accounting model. 3. Determine the amount of receivables from clients that the firm would show in its year I and year 2 balance sheets prepared according to the accrual accounting model. Listed below are several transactions that took place during the second and third years of operations for the RPG Company Year 2 Year 3 Amounts billed to customers for services rendered $350,000 $450,000 Cash collected from credit customers 260,000 400,000 Cash disbursements: Payment of rent 80,000 -0- Salaries paid to employees for services rendered during the year 140,000 160,000 Utilities 30,000 40,000 Advertising 15,000 35,000 In addition, you learn that the company incurred advertising costs of $25,000 in year 2, owed the advertising agency $5,000 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no antici- pated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3. Required: 1. Calculate accrual net income for both years. 2. Determine the amount due the advertising agency that would be shown as a liability on RPG's balance sheet at the end of year 2