Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 15

Determining net income from net cash flow from operating activities
Curwen Inc. reported net cash flow from operating activities of $357,500 on its statement of cash flows for the year ended December 31, 2016. The following information was reported in the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method:

a. Determine the net income reported by Curwen Inc. for the year ended December 31, 2016.
b. Briefly explain why Curwen's net income is different than net cash flow from operating activities.