Listed below are several transactions that took place during the first two years of operations for the law firm of Perez Associates. Year 2 $ 228,000 186,000 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. In addition, you learn that the firm incurred utility costs of $33,000 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 1 and 3 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 2 1. Net operating cash flow 3. Receivables Year 1 Year 1 $ 178,000 156,000 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 2 86,000 28,000 58,800

Listed below are several transactions that took place during the first two years of operations for the law firm of Perez. Associates. In eddation, you learn that the firm incurred utlify costs of $33,000 in year 1 that there were no leatities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-yder period: Required: 1. 8 3. Caiculate the net operating cash flow for years 1 and 2 ond determine the amount of fecevables from clients thot the firm would show in its yoar 1 and year 2 bolancesheets prepared occording to the acciual accounting model. 2. Prepare an income statement for eoch year according to the sccrual accounting model. Complete this question by entering vour answers in the tabs below. Calculate the net operating cash flow for years 1 and 2 and determine the amount of recervables from clients that the firm would show in as year 1 and year 2 balance sheets perpared according to the aconsil accounteng model. Widen Net cash oidtlows should be indicated by a minus sign Prepare an income statement for each year according to the accrual accounting model