Listed below are several transactions that took place during the first two years of operations for the law firm of Perez Associates. Year 2 $ 236,000 182,000 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 Complete this question by entering your answers in the tabs below. Year 1 $ 186,000 152,000 In addition, you learn that the firm incurred utility costs of $31,000 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. 82,000 26,000 57,600 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. Req 1 and 3 92,000 32,000 1 Net operating cash flow 3. Receivables Reg 2 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. Year 1 Year 2 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. Reg 1 and 3 In addition, you learn that the firm incurred utility costs of $31,000 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 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. Reg 2 Prepare an income statement for each year according to the accrual accounting model. Perez Associates Income Statements Year 1 Revenues Expenses Salaries Utilities Insurance Year 1 $ 186,000 152,000 Net income (loss) 82,000 26,000 57,600 Year 2 Year 2 $ 236,000 182,000 92,000 32,000 0 4