Module $3$ Homework

Computing and Comparing Income and Cash Flow Measures

Penno Corporation recorded service revenues of $$200,000$ during the most recent fiscal year, of which $$170,000$ were on credit and $$30,000$ were for cash. Moreover, of the $$170,000$ credit sales, Penno collected $$20,000$ cash on those receivables before year$-$end. The company also paid $$25,000$ cash for wages for the year. Its employees also earned another $$15,00Q$ in wages during the year, which were not yet paid at year$-$end.

a$.$ Compute the compan's net income for the fiscal year. $$

b$.$ How much net cash inflow or outflow did the company generate during the year?

Note: Enter net cash inflow as positive and net cash outflow as negative.Module $3$ Homework

Computing and Comparing Income and Cash Flow Measures

Penno Corporation recorded service revenues of $$200,000$ during the most recent fiscal year, of which $$170,000$ were on credit and $$30,000$ were for cash. Moreover, of the $$170,000$ credit sales, Penno collected $$20,000$ cash on those receivables before year$-$end. The company also paid $$25,000$ cash for wages for the year. Its employees also earned another $$15,00Q$ in wages during the year, which were not yet paid at year$-$end.

a$.$ Compute the compan's net income for the fiscal year. $$

b$.$ How much net cash inflow or outflow did the company generate during the year?

Note: Enter net cash inflow as positive and net cash outflow as negative.

Explain why Penno's net income and net cash flow differ.

Note: Do not use a negative sign below.

Cash inflow from services rendered will be $ $$ than service revenue per the income statement because Penno only collected : $$ of revenues in cash but reported $$ as revenue.

Cash outflow for wages paid will be $$ than wages expense on the income statement because: $$ remained unpaid at year$-$end.

The combined effects of these two items yields an overall difference of $ $$ between net income and net cash $$ inflow

Explain why Penno's net income and net cash flow differ.

Note: Do not use a negative sign below.

Cash inflow from services rendered will be $ $$ than service revenue per the income statement because Penno only collected : $$ of revenues in cash but reported $$ as revenue.

Cash outflow for wages paid will be $$ than wages expense on the income statement because: $$ remained unpaid at year$-$end.

The combined effects of these two items yields an overall difference of $ $$ between net income and net cash $$ inflow