The following income statement and information about changes in noncash current assets and current liabilities are reported.
		Arundel Company
		Income Statement
	For the year ended December 31, 20XX
Revenues				$100,000
Operating expenses
Salaries expense			$84,000
Utilities expense			14,000
Depreciation expense			14,000
Other expenses			3,400
Total operating expenses				116,000
Net loss				($16,000)

1. Prepare the operating activities section of the statement of cash flows using the indirect method.

2.What were the major reasons that this company was able to report a net loss but positive cash flow from operations?

3.Of the potential causes of differences between cash flow from operations and net income, which are the most important to investors?