Big A’s Auto Service was started on January 1, 2006. The company experienced the following events during its first two years of operation.

Events Affecting 2006 

1. Provided \($30,000\) of repair services on account.
2. Collected \($25,000\) cash from accounts receivable.
3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.

Events Affecting 2007 

1. Wrote off a \($280\) account receivable that was determined to be uncollectible.
2. Provided \($35,000\) of repair services on account.
3. Collected \($31,000\) cash from accounts receivable.
4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.

Required:

a. Organize the transaction data in accounts under an accounting equation.

b. Determine the following amounts:
(1) Net income for 2006.
(2) Net cash flow from operating activities for 2006.
(3) Balance of accounts receivable at the end of 2006.
(4) Net realizable value of accounts receivable at the end of 2006.

c. Repeat Requirement b for the 2007 accounting period.