
Introduction:
Net income: Net income is the total revenues less all expenses and costs, incurred. In other words, net income or profit of a business is calculated by deducting all expenses and costs from total revenues.
Sources of financing: It is the source of amounts to be invested in a business. For example, loan can be provided to invest in business. In this case, the source of financing is debt.
To explain:
- How cash flow can lag behind the net income.
- Potential sources of financing for its future expansion

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Chapter 16 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
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