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

What does net income mean on the income statement?

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.

I did several haircuts during the last week of the year and sent bills to all the customers? When is that counted?

In December I was paid $200 in advance for some hair coloring I will do in January next year. My accountant tells me thats a liability. That does not make sense.