During 2014 crest corporation earned 5,000 of cash revenue and accrued 3,000 of salaries expense.

Required

A. Prepare the December 31, 2014 balance sheet

B determine the amount of net income that crest would report on the 2014 income statement.

C. Determine the amount of net cash flow from operating activities that crest would report on the 2014 statement of cash flow.

D. Why are the answers to requirements b and c different?