Itasca International performed services on account for $160,000 in 2015. Itasca collected $120,000 cash from accounts receivable during 2015, and the remaining $40,000 was collected in cash during 2016.

a. Record the 2015 transactions in T-accounts

b. Record the 2015 transactions in a horizontal statements model like the following one:

Assets = Liability + Equity	Revenue - Expenses = Net Income	Cash Flow
Cash + Accts. Rec = Ret. Earn

c. Determine the amount of revenue Itasca would report on the 2015 income statement

d. Determine the amount of cash flow from operating activities Itasca would report on the 2015 statement of cash flows

e. Open a T-account for Retained Earnings, and close the 2015 Service Revenue account to the Retained Earnings Account

f. Record the 2016 cash collection in the appropriate T-accounts

g. Record the 2016 transaction in a horizontal statements model, like the one shown in requirement b

h. Assuming no other transactions occur in 2016, determine the amount of net income and the net cash flow from operating activities for 2017.