Listed below are several transactions that took place during the first two years of operations for the law firm of Perez Associates. 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 Complete this question by entering your answers in the tabs below. Req 1 and 3 In addition, you learn that the firm incurred utility costs of $38,000 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. Req 2 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. 1. Net operating cash flow 3. Receivables $ Year 1 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. Note: Net cash outflows should be indicated by a minus sign. 16,000 Year 1 $ 182,000 166,000 $ $ 96,000 33,000 61,800 Year 2 Year 2 $ 232,000 196,000 57,000 36,000 106,000 46,000 0

In addition, you learn that the firm incurred utility costs of $38,000 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. &3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of recelvables from clients that the firm wou 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. 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 yrepored according to the accrual accounting model. Note: Net cash outhows should be indicated by a minus sign. In addition, you learn that the firm incurred utility costs of $38,000 in year 1 , that there were no fiabilities at the end of year 2 , no anticipated bad debts on receivables, and that the insurance policy covers a three-year period. Required: 1. 8. 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. Prepare an income statement for each year according to the eccrual accounting model