During 2016, Chung Corporation earned $8,000 of cash revenue and accrued $5,000 of salaries expense. Required Based

Question:

During 2016, Chung Corporation earned $8,000 of cash revenue and accrued $5,000 of salaries expense.

Required

Based on this information alone:

a. Prepare the December 31, 2016, balance sheet.

b. Determine the amount of net income that Chung would report on the 2016 income statement.

c. Determine the amount of net cash flow from operating activities that Chung would report on the 2016 statement of cash flows.

d. Why are the answers to Requirements b and c different?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...