Cash flows: Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during...

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Cash flows: Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable - End of year Accounts payable - End of year Payables Advertising Payables- Utilities Accounts payable total Additional information: There were no anticipated bad debts on receivables. The rent payment was for a two-year period, year 2 and year 3. Required: 1. Calculate the net operating cash flow for years 2 and 3. Year 2 $260,000 Year 3 $400,000 180,000 210,000 15,000 22,000 8,000 6,000 80,000 0 Year 1 Year 2 Year 3 $20,000 $35,000 $18,000 3,000 4,000 2,000 800 $3,800 1,200 0 $5,200 $2,000 2 years Year 2 ($23,000) Year 3 $162,000 2. Prepare an income statement for each year according to the accrual accounting model. Revenues Expenses: Salaries Advertising Utilities Rent Net income (loss) ABC Company Income Statements - Accrual basis Year 2 Year 3 180,000 210,000 . Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. Nothing in this area will be graded, but it will be submitted with your assignment. Cash flows: Cash collected from clients Cash disbursements: Salaries paid to employees for services rendered during the year Advertising Utilities Payment of rent Balance Sheet information Accounts receivable - End of year Accounts payable - End of year Payables Advertising Payables- Utilities Accounts payable total Additional information: There were no anticipated bad debts on receivables. The rent payment was for a two-year period, year 2 and year 3. Required: 1. Calculate the net operating cash flow for years 2 and 3. Year 2 $260,000 Year 3 $400,000 180,000 210,000 15,000 22,000 8,000 6,000 80,000 0 Year 1 Year 2 Year 3 $20,000 $35,000 $18,000 3,000 4,000 2,000 800 $3,800 1,200 0 $5,200 $2,000 2 years Year 2 ($23,000) Year 3 $162,000 2. Prepare an income statement for each year according to the accrual accounting model. Revenues Expenses: Salaries Advertising Utilities Rent Net income (loss) ABC Company Income Statements - Accrual basis Year 2 Year 3 180,000 210,000 . Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. Nothing in this area will be graded, but it will be submitted with your assignment.