Computing and Comparing Income and Cash Flow Measures

Penno Corporation recorded service revenues of $$200,000$ during the most recent fiscal year, of which $$170,000$ were on credit and $$30,000$ were for cash. Moreover, of the $$170,000$ credit sales, Penno collected $$20,000$ cash on those receivables before year$-$end. The company also paid $$25,000$ cash for wages for the year. Its employees also earned another $$15,000$ in wages during the year, which were not yet paid at year$-$end.

a$.$ Compute the company's net income for the fiscal year.

b$.$ How much net cash inflow or outflow did the company generate during the year?

Note: Enter net cash inflow as positive and net cash outflow as negative.

Explain why Penno's net income and net cash flow differ.

Note: Do not use a negative sign below.

Cash inflow from services rendered will be $ $$ than service revenue per the income statement because Penno only collected $$ of revenues in cash but reported $$ as revenue.

Cash outflow for wages paid will be $ $$ than wages expense on the income statement because $$ remained unpaid at year$-$end.