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	$	174,000		$	224,000
Cash collected from customers		162,000			192,000
Cash disbursements:
Salaries paid to employees for services rendered during the year		92,000			102,000
Utilities		31,000			42,000
Purchase of insurance policy		60,600			0

In addition, you learn that the company incurred utility costs of $36,000 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. 2.Prepare an income statement for each year according to the accrual accounting model. 3.Determine the amount of receivables from customers that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.