1. Smith Company had cash receipts from customers in 2005 of $152,000. Cash payments for operatingexpenses were $97,000. Smith has determined that at January 1, accounts receivable was $13,000,and prepaid expenses were $17,500. At December 31, accounts receivable was $18,600, and prepaid expenses were $23,200. Compute (a) service revenue and (b) operating expenses.