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 2Amounts billed to clients for services rendered $188,000 $238,000Cash collected from clients 169,000 199,000Cash disbursementsSalaries 99,000 109,000Utilities 34,500 49, 000Purchase of insurance policy 62,700 0In addition, you learn that the company incurred utility costs of $34,500 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 company 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.