Anne Marie, the owner of Anne's Beauty Salon continues to ask you questions about her financial statements:

1. What does net income mean on the income statement?
2. The income statement says that I made $15,000 net income, but I only have 949.50 cash.I don't understand why I have so much net income and so little cash.
3. I did several haircuts during the last week of the year and sent bills to all the customers?When is that counted?
4. In December I was paid $200 in advance for some hair coloring I will do in January next year.My accountant tells me that's a liability.That does notmake sense.