Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.

	Year 1			Year 2
Amounts billed to customers for services rendered	$	186,000		$	236,000
Cash collected from customers		168,000			198,000
Cash disbursements:
Salaries paid to employees for services rendered during the year		98,000			108,000
Utilities		34,000			48,000
Purchase of insurance policy		62,400			0

In addition, you learn that the company incurred utility costs of $39,000 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.	Calculate the net operating cash flow for years 1 and 2. (Net cash outflows should be indicated by a minus sign.)

2.	Prepare an income statement for each year according to the accrual accounting model.

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete and Roy. In addition, you learn that the company include utility costs of $39,000 in year 1, that there wore no 1 at the end of year 2, no bad debts on receivables and that the policy covers a three - year period. Calculated the net operating cash flow for years 1 and 2.(Net cost should be indicated by a minus sign.) Prepare an Prepare an income statement for each year according to the accrual accounting method. Determine the amount of from customers that the company would show in and year 2 balance prepared sheets prepared according to the accrual accounting model