Listed below are several transactions that took place during the second and third years of operations for the ABC Company. Cash flows: Cash collected from credit customers Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable - End of year Accounts payable - End of year Payables Advertising Payables Utilities Accounts payable - total H Year 1 $20,000 3,000 800 $3,800 Year 2 $260,000 180,000 15,000 8,000 80,000 Year 2 $35,000 4,000 1,200 $5,200 Year 3 $18,000 Year 3 $400,000 Required: 1. Calculate the net operating cash flow for years 2 and 3. 2. Prepare an income statement for each year according to the accrual accounting method. Navigation: 2,000 0 $2,000 210,000 22,000 6,000 0 In addition, you learn that there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.

Listed below are several transactions that took place during the second and third years of operations for the ABC Company In addition, you learn that there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, yea and year 3 Required: 1. Calculate the net operating cash flow for years 2 and 3 2. Prepare an income statement for each year according to the accrual accounting method. Additional information: There were no anticipated bad debts on receivables. The rent payment was for a two-year period, year 2 and year 3 . 2 years Required: \begin{tabular}{lllll} A & B & C & D & E \\ \hline \end{tabular} \begin{tabular}{l} \hline Income Statements - Accrual basis \\ Revenues \\ Expenses: \\ Salaries \\ \hline Advertising \\ \hline Utilities \\ Rent \\ Net income (loss) \end{tabular}