Valmont, Inc., experienced the following events in 2012, in its first year of operations.
1. Received $20,000 cash from the issue of common stock.
2. Performed services on account for $50,000.
3. Paid the utility expense of $12,500.
4. Collected $39,000 of the accounts receivable.
5. Recorded $9,000 of accrued salaries at the end of the year.
6. Paid a $5,000 cash dividend to the shareholders.
c. Why is the amount of net income different from the amount of net cash flow from operating activities?
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The complete solutions to your two posted problems are provided in a separate excel file (**attached**).
The solution discusses the effect of events on the accounting equation.