Problem: Net income versus changes in cash
In 2016, Lee Inc. billed its customers exist62,000 for services performed. The company collected exist51,000 of the amount billed. Lee incurred exist 39,000 of other operating expenses on account. Lee paid exist31,000 of the accounts payable. Lee acquired exist40,000 cash from the issue of common stock. The company invested exist21,000 cash in the purchase of land.
Required
Use the preceding information to answer the following questions:
a. What amount of revenue will Lee report on the 2016 income statement?
b. what amount of cash flow from revenue will be reported on the statement of cash flows?
c. What is the net income for the period?
d. What is the net cash flow from operating activities for the period?
e. Why is the amount of net income different from the net cash flow from operating activities for the period?
f. What is the amount of net cash flow from investing activities?
g. What is the amount of net cash flow from financing activities?
h. What amounts of total assets, liabilities, and equity will be reported on the year-end balance sheet?