(Solved): Listed below are several transactions that took place during the first two years of operations for ...

Listed below are several transactions that took place during the first two years of operations for a law firm. In addition, you learn that the firm incurred utility costs of \( \$ 39,500 \) 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 wo 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. Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients the would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. Note: Net cash outflows should be indicated by a minus sign. Prepare an income statement for each year according to the accrual accounting model.