In 2011, Ace Company billed its customers \(\$ 100,000\) for services performed. The company subsequently collected \(\$ 73,000\) of the amount billed. Ace incurred \(\$ 69,000\) of operating expenses on account. Ace paid \(\$ 62,000\) of that amount. Ace acquired \(\$ 30,000\) cash from the issue of common stock. The company invested \(\$ 40,000\) cash in the purchase of land.

Required
Use the preceding information to answer the following questions. (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before answering the questions.)

a. What amount of revenue will Ace report on the 2011 income statement?

b. What is the net income for the period?

c. What amount of cash flow from revenue will Ace report on the statement of cash flows?

d. What is the net cash flow from operating activities for the period?

e. Why is the amount of net income different from the net cash flow from operating activities for the period?

f. What is the amount of net cash flow from investing activities?

g. What is the amount of net cash flow from financing activities?

h. What amount of total equity will Ace report on the year-end balance sheet?