The following information is reported by ComCo, a Singapore company; all figures are in millions of Singapore dollars ($).The firm reported revenues of $15,882, cost of goods sold of $13,671, interest and other expenses of $2,113, and tax expense of $67.It also reported $14,894 in cash receipts from customers, $102 in miscellaneous cash receipts, $6,447 in cash payments to employees and creditors, $6,861 in cash payments for milk, $402 in cash payments for interest, and $64 in cash payments for taxes.
Required:
1)Calculate net income and its net cash flow.
2)Explain why ComCo's net income is so much different than its net cash flow.

Question

The following information is reported by ComCo, a Singapore company; all figures are in millions of Singapore dollars ($).The firm reported revenues of $15,882, cost of goods sold of $13,671, interest and other expenses of $2,113, and tax expense of $67.It also reported $14,894 in cash receipts from customers, $102 in miscellaneous cash receipts, $6,447 in cash payments to employees and creditors, $6,861 in cash payments for milk, $402 in cash payments for interest, and $64 in cash payments for taxes. 
Required:
1)Calculate net income and its net cash flow.
2)Explain why ComCo's net income is so much different than its net cash flow.

Quizplus · Accepted Answer

The Answer of The following information is reported by ComCo, a Singapore company; all figures are in millions of Singapore dollars ($).The firm reported revenues of $15,882, cost of goods sold of $13,671, interest and other expenses of $2,113, and tax expense of $67.It also reported $14,894 in cash receipts from customers, $102 in miscellaneous cash receipts, $6,447 in cash payments to employees and creditors, $6,861 in cash payments for milk, $402 in cash payments for interest, and $64 in cash payments for taxes. 
Required:
1)Calculate net income and its net cash flow.
2)Explain why ComCo's net income is so much different than its net cash flow.

The Following Information Is Reported by ComCo, a Singapore Company;