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During 2013, Crest Corporation earned $5,000 of cash revenue and accrued $3,000 of salaries expense.
Required:
Based on this information alone:
a. Prepare the December 31, 2013, balance sheet. b. Determine the amount of net income that Crest would report on the 2013 income statement. c. Determine the amount of net cash flow from operating activities that Crest would report on the 2013 statement of cash flows. d. Why are the answers to Requirements b and c different?
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