Cash collected from clients Cash disbursements; Salaries paid to employees for services rendered during the year Utilities Purchase of insurance policy In addition, you learn that the firm incurred utility costs of $37,000 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. & 3. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. 2. Prepare an income statement for each year according to the accrual accounting model. Complete this question by entering your answers in the tabs below. Req 1 and 3. Prepare an income statement for each year according to the accrual accounting model, Perez Associates Income Statements Revenues Expenses Salaries Utilities Insurance Req 2 Answer is complete but not entirely correct. Net income (oss) Year 1 $ 178,000 Year 2 $ 228,000 164,000 94,000 32,000 61,200 94,000 37,000 20,400 26.600 S 194,000 104,000 44,000 104,000 44,000 20,400 50,000