Milea Inc. Experienced the following events in 2018, its first year of operations:
1. Received $20,000 cash from the issue of common stock.
2. Performed services on account for $56,000.
3. Paid the utility expense of $2,500.
4. Collected $48,000 of the accounts receivable.
5. Recorded $10,000 of accrued salaries at the end of the year.
6. Paid a $2,000 cash dividend to the stockholders
a. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cashows for the 2016 accounting period. B. Why is the amount of net income different from the amount of net cash ow from operating activities?
