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Problem 1: Ronald Company provided services for $25,000 cash during the 2020 accounting period. Ronald incurred $20,000 expenses on account during 2020, and by the end of the year, $11,000 of that amount had been paid with cash. Assuming that these are the only accounting events that affected Ronald during 2020,
a. The amount of net loss shown on the income statement is $5,000.b. The amount of net cash flow from operating activities shown on the statement of cash flows is $16,000.c. The amount of net income shown on the income statement is $5,000.d. The amount of net income shown on the income statement is $14,000.
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