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Venture Company earned $8000 of service revenue on account during 2010. The company collected $5200 cash from accounts receivable during 2010.
Based on this information alone, determine the following.
C. The amount of net income that Venture would report on the 2010 income statement would be ________.
D. The amount of cash flow from operating activities that Venture would report on the 2010 statement would be __________
E. The amount of retained earnings that Venture would report on the 2010 balance sheet would be ___________
F. Why are the answers to C and D different? Complete the statement below...
$________ of revenue was earned buy only $ _________ of it was collected.
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