Ed Ng is a friend of yours from university.After finishing high school he decided to open his own human resources consulting business rather than working for a large bureaucratic organization.He recently opened his business,and has contracted his services to a number of local retailers.He is paid a monthly fee for his services.
He has just received his first set of financial statements from his accountant.He is quite upset.The statements show a cash balance of $7,200 at the end of the month,but a net income of only $1,000.He has written you a letter,asking you whether such a situation is possible,or whether he should find another accountant.
Please explain to Ed what happened.

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The Answer of Ed Ng is a friend of yours from university.After finishing high school he decided to open his own human resources consulting business rather than working for a large bureaucratic organization.He recently opened his business,and has contracted his services to a number of local retailers.He is paid a monthly fee for his services.
He has just received his first set of financial statements from his accountant.He is quite upset.The statements show a cash balance of $7,200 at the end of the month,but a net income of only $1,000.He has written you a letter,asking you whether such a situation is possible,or whether he should find another accountant.
Please explain to Ed what happened.

Ed Ng Is a Friend of Yours from University