Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. There were $250 of supplies on hand as of December 31, Year 1. d. Explain why the amounts of net income and net cash flow from operating activities differ. ; Net Cash Flow from Operating Activities is of revenue was earned on account, but none was collected; Net income is of supplies were used, but none were paid for.
Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. There were $250 of supplies on hand as of December 31, Year 1. d. Explain why the amounts of net income and net cash flow from operating activities differ. ; Net Cash Flow from Operating Activities is of revenue was earned on account, but none was collected; Net income is of supplies were used, but none were paid for.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(answer in text form please (without image), Note: .Every entry should have narration please)
Transcribed Image Text:Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two
events: (1) Chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies
on account. There were $250 of supplies on hand as of December 31, Year 1.
d. Explain why the amounts of net income and net cash flow from operating activities differ.
; Net Cash Flow from Operating Activities is
of revenue was earned on account, but none was collected;
Net income is
of supplies were used, but none were paid for.
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