The following journal entries were recorded by Lauren Retailing during the month of July:

a. Prepare an income statement and the operating section of a statement of cash flows.b. Explain why net income is not equal to net cash flow from operations, and reconcile the twonumbers.

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1. Cash Accounts Receivable Sales 2. Cash Accounts Receivable 5.000 3,000 8,000 2.000 2.000 3. Inventory Accounts Payable 4. Accounts Payable Cash 5,800 5.800 2.800 2,800 5. Cost of Goods Sold Inventory 6. Асспиеd Expревses Accrued Payables 3,700 3,70I 2.500 2.500