An expansion at fidell, inc., would increase sales revenues by $75,000 per year and cash operating expenses by $38,000 per year. the initial investment would be for equipment that would cost $135,000 and have a 5 year life with no salvage value. the annual depreciation on the equipment would be $27,000. the simple rate of return on the investment is closest to: a.20.0% b.13.3% c.7.4% d.27.4%

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 $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 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 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.