1. Its possible for a firm to have Revenues on its Income Statement, but no cash inflows, ANDExpenses on its Income Statement, but no cash outflows. TRUE or FALSE? And why? In other words,could the firm have a very simple income statement looking like this:

Revenues $1,000 Expenses (700)Net Income $300

When the cashflows look more like this?

Cash in	$0
Cash out	(0)
Cashflow	$0

Dont forget to explain how this situation could happen if you think the answer is True, or how it couldnthappen if you think the answer is False. Remember to mention both Revenues and Expenses.

(just a few sentences needed to explain solution)