Item $13\mathrm{.}75$ points Item $1$ Exercise $1-1($Algo$)$ Accrual accounting $[$LO$1-2]$ Listed below are several transactions that took place during the first two years of operations for the law firm of Perez Associates. $$ Year $1$ Year $2$ Amounts billed to clients for services rendered $ $178,000$ $ $228,000$ Cash collected from clients $164,000194,000$ Cash disbursements: $$ Salaries paid to employees for services rendered during the year $94,000104,000$ Utilities $32,00044,000$ Purchase of insurance policy $61,2000$ 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.