During 2016 Star Corporation earned 5 000 of cash revenue and
During 2016, Star Corporation earned $5,000 of cash revenue and accrued $3,000 of salaries expense.
Required
Based on this information alone:
a. Prepare the December 31, 2016, balance sheet.
b. Determine the amount of net income that Star would report on the 2016 income statement.
c. Determine the amount of net cash flow from operating activities that Star would report on the 2016 statement of cash flows.
d. Why are the answers to Requirements b and c different?
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