Gato inc. had the following inventory situations to consider at january 31, its year-end.
(a) goods held on consignment for steele corp. since december 12.
(b) goods shipped on consignment to logan holdings inc. on january 5.
(c) goods shipped to a customer, fob destination, on january 29 that are still in transit.
(d) goods shipped to a customer, fob shipping point, on january 29 that are still in transit.
(e) goods purchased fob destination from a supplier on january 25 that are still in transit.
(f) goods purchased fob shipping point from a supplier on january 25 that are still in transit.
(g) office supplies on hand at january 31.
identify which of the preceding items should be included in inventory. if the item should not be included in inventory, state in what account, if any, it should have been recorded.

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.