Required information

[The following information applies to the questions displayed below.] Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $21,400 of services on account, and (2) he purchased $4,600 of supplies on account. There were $1,050 of supplies on hand as of December 31, Year 1.

d. Explain why the amounts of net income and net cash flow from operating activities differ.

Net income is		; Net Cash Flow from Operating Activities is		.
	of revenue was earned on account, but none was collected;
of supplies were used, but none were paid for.