Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $15,100 of services on account, and (2) he purchased $5,100 of supplies on account. There were $800 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