Required information [The following information applies to the questions displayed below.] The trial balance for Terry's Auto Shop as of January 1, Year 2, follows: The following events affected the company during the Yeat 2 accounting period: 1. Purchased merchandise on account that cost $4,300. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash. 3. Returned $465 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company recelved an $215 allowance. 5. Sold merchandise that cost $2.740 for $13,500 cash. 6. Dellvered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $155 cash. 7. Paid $2,920 on the merchandise purchased in Event 1. 8. Paid $8,950 cash for operating expenses. d. Why does a difference exists between net income and net cash flow from operating activities. Multiple Choice inventary gystem when determining net incone The atflerence betwein net income and net cash flow tom operaing activities oxists because the shop is not seling ofl the inventory that it purchased during the jeriod