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 Year 1 Year 2 $172,000 $222,000 Cash collected from clients 159,000 189,000 Cash disbursements Salaries paid to employees for services rendered during the year 89,000 99,000 Utilities Purchase of insurance policy 29,500 59,700 39,000 0 In addition, you learn that the firm incurred utility costs of $34,500 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.