Capaning Company earned $18,000 of revenue on account during 2013. The company collected $14,000 cash from accounts

Question:

Capaning Company earned $18,000 of revenue on account during 2013. The company collected $14,000 cash from during 2013.

Required
Based on this information alone, determine the following.
a. The balance of that Capaning would report on the December 31, 2013, balance sheet.
b. The amount of net income that Capaning would report on the 2013 income statement.
c. The amount of net cash flow from operating activities that Capaning would report on the 2013 statement of cash flows.
d. The amount of retained earnings that Capaning would report on the December 31, 2013, balance sheet.
e. Why are the answers to Requirements b and c different?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...