Relationship Between Income and Cash Flows In each of the following cases, indicate whether reported income on the accrual basis will be greater than or less than the reported net cash flow.

a. The company purchases buildings and equipment for cash.

b. Money borrowed in the prior year is repaid this year.

c. The company is short of cash and delays payment on many of its current expenses.

d. The company makes a major effort to collect its outstanding receivables, and the amount of customer’s receivables outstanding is reduced by 50 percent.

e. A supplier goes into bankruptcy and the company purchases enough inventory to meet its production needs for the next two years.