Listed below are several transactions that took place during the first two years of operations for the law im Tree Year 1 $176,000 157,000 Year 2 $226,000 187,000 Amounts billed to clients for services rendered Cash collected from clients Cash disbursements Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 87,880 28,580 59,100 97,000 37,000 In addition, you learn that the company incurred utility costs of $33,500 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 company 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 3 Req 2 Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company 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.) 1. Net operating cash flow 3. Receivables $ S Year 1 (17,600) S 157,000S Year 2 53,000 187,000 In addition, you learn that the company incurred utility anticipated bad debts on receivables, and that the ins Required: 1. & 3. Calculate the net operating cash flow for years would show in its year 1 and year 2 balance sheets pre 2. Prepare an income statement for each year accordi Complete this question by entering your answers Reg 1 and 3 Reg 2 Prepare an income statement for each year according to Year 2 226,000 $ PETE, PETE, AND ROY Income Statements Year 1 Revenues $ 176,000 Expenses Salaries (87,000) Utilities (33,500) Insurance (19,700) Net income (loss) $ 35,800 (97,000) (32,000) (19,700) 77,300 $