The beginning account balances for Miller Company were as follows for 2013, 2014, and 2015:

Miller Company experienced the following events for the accounting periods 2013, 2014, and 2015: 

2013 :

1. Performed services for $36,000 on account. 

2. Paid rent of $6,000 for the period March 1, 2013, to March 1, 2014. 

3. Incurred operating expenses of $18,000 on account. 

4. Collected $32,000 of accounts receivable. 

5. Paid $19,000 of accounts payable. 

6. Recorded expired rent. 

2014 :

1. Performed services on account of $48,000. 

2. Paid rent of $8,400 for the period March 1, 2014, to March 1, 2015, and recorded the expired rent for the period January 1, 2014, to March 1, 2014. 

3. Incurred operating expenses of $24,000 on account. 

4. Collected $52,000 of accounts receivable. 

5. Paid $20,000 of accounts payable. 

6. Recorded expired rent. 

7. Recorded accrued salaries of $2,100. 

2015 :

1. Paid accrued salaries. 

2. Performed services on account of $56,000. 

3. Paid rent of $9,000 for the period March 1, 2015, to March 1, 2016, and recorded the expired rent for the period January 1, 2015, to March 1, 2015.
4. Incurred operating expenses of $32,000 on account. 

5. Collected $55,000 of accounts receivable. 

6. Paid $33,000 of accounts payable. 

7. Sold land for $5,000; the land had a cost of $5,000. 

8. Recorded expired rent.

Required: Divide the class into groups of four or five students. Organize the groups into three sections. Assign each section of groups the financial data for one of the preceding accounting periods. Group Task: 

a. Prepare an income statement, balance sheet, and statement of cash flows. It may be helpful to open T-accounts and post transactions to these accounts before attempting to prepare the statements. Class Discussion: 

b. Review the cash flows associated with the collection of receivables and the payment of payables. Comment on the company's collection and payment strategy. 

c. Did net income increase or decrease between 2013 and 2014? What were the primary causes? 

d. Did net income increase or decrease between 2014 and 2015? What were the primary causes?