Pilgram Company earned \($6,000\) of service revenue on account during 2008. The company collected \($5,200\) cash from accounts receivable during 2008.

Required:

Based on this information alone, determine the following. 

a. The balance of the accounts receivable that Pilgram would report on the December 31, 2008, balance sheet.

b. The amount of net income that Pilgram would report on the 2008 income statement.

c. The amount of net cash flow from operating activities that Pilgram would report on the 2008 statement of cash flows.

d. The amount of retained earnings that Pilgram would report on the 2008 balance sheet.

e. Why are the answers to Requirements b and c different?