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 2 $188,000 $238,000 199,000 Year 1 Amounts billed to customers for services rendered Cash collected from customers Cash disbursements 169,000 Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy 99,000 34,500 62,700 109,000 49,000 In addition, you learn that the company incurred utility costs of $39,500 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 perioo Required: 1. Calculate the net operating cash flow for years 1 and 2. (Net cash outflows should be indicated by a minus sign.) Year 1 Year 2 Net operating cash flow 2. Prepare an income statement for each year according to the accrual accounting model PETE, PETE, AND ROY Income Statements Year 1 Year 2 Revenues Expenses Salaries Utilities Insurance Net income (loss)