Presented below is a partial statement of cash flows for Santiago Company for the year ending June 30,2009.
Mr. Santiago, the president of the Company, is puzzled by why a difference exists on the statement presented above, as compared to the company's income statement for the same period that shows net income of $44,000. Provide justification why the two amounts might not be equal.

Question

Presented below is a partial statement of cash flows for Santiago Company for the year ending June 30,2009.
  Mr. Santiago, the president of the Company, is puzzled by why a difference exists on the statement presented above, as compared to the company's income statement for the same period that shows net income of $44,000. Provide justification why the two amounts might not be equal.

Quizplus · Accepted Answer

The Answer of Presented below is a partial statement of cash flows for Santiago Company for the year ending June 30,2009.
  Mr. Santiago, the president of the Company, is puzzled by why a difference exists on the statement presented above, as compared to the company's income statement for the same period that shows net income of $44,000. Provide justification why the two amounts might not be equal.

Presented Below Is a Partial Statement of Cash Flows for Santiago