PLEASE ANWSER! I HAVE 2 MINS LEFT ITS ONLY WRITING EXPLAINATION IT MIGHT BE EAZY FOR YOU ITS A CASE STUDY QUESTION

(PLEASE MAKE YOUR EXPLAINATION CLEAR AND READ YHE QUESTION CAREFULLY)

Case 2 - Mike's Garage and Tune-Ups is owned by top-notch mechanic Mike Weir. Mike is having some difficulty understanding his April income statement. The statement shows a net income of $4,000. Mike is satisfied with the income his business has earned, but he cannot understand why his bank balance has not increased by the same amount Mike directs this question to his accountant: if my net income is $4,000 per month, why doesn't my bank balance also increase by $4,000? Instead it has increased by only $500 during the month!" 1. Provide three possible reasons why cash has increased only $500 and not $4000, despite the net income. 2. Mike is talking about improving sales by extending credit to his customers. He wants to allow them 30 days to pay. Advise him on two possible outcomes of this course of action (positive or negative)