12.1 A. What is the difference in timing between the income statement and the balance sheet? b. Explain what is wrong with this statement: "The clinic's cash balance for 2016 was $150,000, while its net income on December 31, 2016, was $50,000." 12.6 a. What is the difference between liabilities and equity? B- What makes a liability a current liability? C. Give some examples of current liabilities. d. What is the difference between notes payable and long-term debt? 12.9 a. What is the statement of cash flows, and how does it differ from the income statement? B- What are the three major sections of the statement of cash flows? C- What is the most important line on the statement of cash flows