Reference no: EM131680201

Question - Listed below are several transactions that took place during the first two years of operations for the accounting firm of Christopher Rollins, Inc.

                                                                              Year 1              Year 2

Amounts billed to customers for services rendered      $380,000           $440,000

Cash collected from customers:                                 330,000             450,000

Cash disbursements:

Payment of rent for two years                                   60,000                   - 0 -

Salaries paid to employees                                       200,000              210,000

Travel                                                                     50,000                60,000

Utilities                                                                    25,000                50,000

In addition, you learn that the company incurred utility costs of $35,000 in year one, a third of travel costs paid in year two represented a trip taken in year one, that there were no liabilities at the end of year two, and no anticipated bad debts on receivables.

Calculate the net income for years 1 and 2.