Please could you help to answer the 2 attached questions. Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.| Transaction | Year 1 | Year 2 ||-------------------------------------------------------|---------|---------|| Amounts billed to clients for services rendered | $182,000| $240,000|| Cash collected from clients | $150,000| $180,000|| Cash disbursements | | || Salaries paid to employees for services rendered | $80,000 | $90,000 || Utilities | $25,000 | $30,000 || Purchase of insurance policy | $57,000 | $0 |In addition, you learn that the firm incurred utility costs of $30,000 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.**Instructions:**Complete this question by entering your answers in the tabs below.**Req 1 and 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. (Net cash outflows should be indicated by a minus sign.)| | Year 1 | Year 2 ||------------------|--------|--------|| Net operating cash flow | | || Receivables | | |**Additional Tabs:**- **Req 2:** Preparation of the income statements according to the accrual accounting model. 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 1 | Year 2 ||-----------------------------|----------|----------|| Amounts billed to clients for services rendered | $182,000 | $240,000 || Cash collected from clients | $150,000 | $180,000 || Cash disbursements | | || Salaries paid to employees for services rendered during the year | $80,000 | $90,000 || Utilities | $25,000 | $30,000 || Purchase of insurance policy | $57,000 | $0 |In addition, you learn that the firm incurred utility costs of $30,000 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.**Instructions:**Complete this question by entering your answers in the tabs below.- Req 1 and 3- Req 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) | | |*Tabs for navigation: Req 1 and 3 | Req 2*

Net Operating cash flow = Cash receipts - Cash disbursement Accounts receivable at the end= accounts receivable at the beginning of the year + amount billed (credit sales for the year) - cash collected from clients #Note Utilities cost are taken as $30,000 in income statement as the statement is made on accrual basis, regardless of the fact that only $25,000 are paid in respect to utilities cost taken in cash flow statement. The operating cash flow are calculated as below- Particular Year 1 Year 2 Cash collected from clients $150,000 $180,000 Cash disbursement: Salaries paid to employees ($80,000) ($90,000) Utilities ($25,000) ($30,000) Purchase of insurance policy ($57,000) ($0) Net operating cash flow ($12,000) $60,000The income statement is as below- Particular Year 1 Year 2 Revenue $182,000 $240,000 Expenses Salaries ($80,000) ($90,000) Utilities ($30,000) ($30,000) Insurance ($19,000) ($19,000) Net income $53,000 $101,000Statement showing accounts receivable for year 1: Particulars Amount Amount billed to customers $182,000 Less: Cash collected from customer ($150,000) Account receivable at the end year 1 $32,000 Statement showing accounts receivable for year 2: Particulars Amount Accounts receivable at the beginning $32,000 Add: Amount billed to customers $240,000 Less: Cash collected from customers ($180,000) Accounts receivable at the end of the year $92,000