Answer:
Explanation:
Year 1:
Cash collected from clients $154,000 
Salaries paid to employees for services rendered during the year $27,000
Utilities $84,000 
Purchase of insurance policy $58,200 
So, in order to find net cash flow, $(154000-27000-84000-58200)=-15200
Year 2:
Cash collected from clients $184,000
Salaries paid 34000
Utilities paid 94000
Insurance paid is 0
So, net cash flow $184000-$(34000+94000)=$56000
Year1 paid 27000 in salaries, accrued =32000
So still 5000 has to be paid in year 2
Year 2 paid 34000 ⇒ so accrued is 29000
Insurance accrued for each year is 58200/3=19400
Income statement for year 1 and 2
                                          year1   year2
Revenue:  
Income from services	182000	232000
Expense
Salary	84000	94000
Utilities	32000	29000
Insurance	19400	19400
Net income	46600	89600