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

question 62

Essay

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.

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Definitions:

Personal Finances

The management of an individual's or family's money, including budgeting, saving, investing, and spending.

Benefit Costs

Expenses incurred by organizations due to the provision of employee benefits, such as health insurance, retirement plans, and paid leave.

Organization Knowledge

The collective expertise, skills, information, and processes that exist within an organization, contributing to its ability to achieve objectives.

Training Budget

The allocation of financial resources dedicated to training and development activities within an organization.