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?
The attached file has the details.
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.