a. Explain four reasons as to why the accrued net income (profit = $100,000) could be so different from the net cash flow from operations (negative $200,000). Assume there are no errors or missing values.

b. As a business owner of a new start up, which of accrued net income or cash flow budget should be considered more important to prepare? Be sure to include a brief description of the role of each of these statements as part of your answer.

c. Accrued net income statements do not include principle payments or nonbusiness transactions. True or False? Explain. Be sure to provide the reasoning behind your answer.

d. If a business has a positive net worth is it always profitable (on an accrual basis)? Please answer and then explain your answer. Be sure to define the terms positive net worth and profitable and provide an example of how this specific scenario can occur in the explanation.

Answer the questions based upon the following information: Company Name Accrued Net Income For the Year ending Dec 31, 20X1 Accrued Revenue Accrued Expenses Accrued Net income $500,000 $ 400,000 $ 100,000 Company Name Cash Flow Statement/Budget For the Year ending Dec 31, 20X1 ($ 200,000) 0 Net Cash Flow from Operations Net Cash Flow from Investing Net Cash Flow from Financing_0 Net Cash Increase during the Year $200,000) plus Cash, beginning of year equals Cash, end of year $250,000 50,000