Question 1)

Bailey Co earns $12486 of revenue on account and in $7245 cash revenue transactions in Year 1. Cash collections of receivables amount to $8632 in Year 1 with the remainder being collected in Year 2. Based on this information alone the company's financial statements would show

Cash inflows for Year 1 $_______

Question 2)

On October 1 of Year 1 Mills Enterprises paid $3,480 cash for an insurance policy that would provide protection for a one year term. The company's fiscal closing date is December 31. Based on this information, the amount of insurance expense appearing on the Year 2 Income Statement would be $_____