Received cash of $60,000 from two investors ( $30,000 each). Each investor was issued 3,000 shares of common stock. Borrowed $40,000 from a local bank and signed two notes. The first note for $10,000 requires payment of principal and 10% interest in six months. The second note for $30,000 requires the payment of principal in two years. Interest at 10% is payable each year on July 1, 2025, and July 1, 2026. Paid \$24,000 in advance for one year's rent on the store building. Purchased office equipment from eTronics for $12,000 cash. Purchased $60,000 of clothing inventory on account from the Birdwell Wholesale Clothing Company. During the month, sold clothing inventory for $35,000 cash. The inventory cost $20,000. Purchased $60,000 of clothing inventory on account from the Birdwell Wholesale Clothing Company. During the month, sold clothing inventory for $35,000 cash. The inventory cost $20,000. Sold clothing inventory on account to Briarfield School for $3,500. The inventory cost $2,000. Subleased a portion of the building to a jewelry store. Received $1,000 in advance for the first two months' rent beginning on July 16. Paid Birdwell Wholesale Clothing \$25,000 on account. Paid salaries to employees for the first half of the month, $5,000. Received $1,500 on account from Briarfield. Paid shareholders a cash dividend of $1,000. Incurred utilities of $500.00 but not paid. 2 Instructions: Prepare the net operating cash for each year. Newman Consulting Company Cash Basis Newman Consulting Company maintains its records on a cash basis. During 2021 the following cash flows were recorded for services provided for 2021, 2022, and 2023: cash received for services rendered to clients, $420,000; and cash paid for salaries ($240,000), utilities ($35,000), and advertising ($12,000), respectively for the entire three years at an equal amount. Accrual Basis Instructions: Prepare the net income for each year. Newman Consulting Company maintains its records on an accrual basis. The following cash amounts were recorded for services provided for 2021, 2022, and 2023: total cash received for each year was $140,000 for services rendered to clients, and cash paid for salaries, utilities, and advertising totaled $240,000, $35,000, and $12,000, respectively for the three years at an equal amount