Listed below are several transactions that took place during the second two years of operations for RPG Consulting.

Listed below are several transactions that took place during the second two years of operations for RPG Consulting.

   

	Year 2			Year 3
Amounts billed to customers for services rendered	$	350,000		$	450,000
Cash collected from credit customers		260,000			400,000
Cash disbursements:
Payment of rent		80,000			0
Salaries paid to employees for services rendered during the year		140,000			160,000
Travel and entertainment		30,000			40,000
Advertising		15,000			35,000

   

In addition, you learn that the company incurred advertising costs of $25,000 in year 2, owed the advertising agency $5,000 at the end of year 1, and there were no liabilities at the end of year 3. Also, there were no anticipated bad debts on receivables, and the rent payment was for a two-year period, year 2 and year 3.