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 $s$

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.

The combined effects of these two items yields an overall difference of :

between net income and net cash