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Capaning Company earned $18,000 of revenue on account during 2013. The company collected $14,000 cash from accounts receivable during 2013.
Required:
Based on this information alone, determine the following.:
a. The balance of accounts receivable that Capaning would report on the December 31, 2013, balance sheet. b. The amount of net income that Capaning would report on the 2013 income statement. c. The amount of net cash flow from operating activities that Capaning would report on the 2013 statement of cash flows. d. The amount of retained earnings that Capaning would report on the December 31, 2013, balance sheet. e. Why are the answers to Requirements b and c different?
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