Use the following information and prepare an Income Statement (to calculate the net profit) and a Statement of Cash Flows for the month. Identify 2 causes for the difference between net profit and cash flow from operating activities. Describe what the Cash Flow Statement reveals. Cash balance, start of month 25,600 |Insurance expense 4,800 Cash balance, end of month 29,800 nsurance paid in advance for the 2,800 next 6 months Cash sales 82,000 |Inventory purchased for cash 38,000 Collections from accounts receivable 45,000 | Office expenses paid 8,000 Cost of sales 79,000 |Payment on accounts payable 44,000 Credit sales 58,000 Proceeds from borrowings 53,000 Depreciation expense 2,700 Proceeds from sale of office 7,000 furniture Drawings (cash) 20,000 Purchase of office furniture and 48,000 computer for cash Wages paid 22,000 a) Prepare an Income Statement to calculate the net profit. (Total 7 marks) Income Statement $ $