A company has a net income of \$100,000 but a cash flow from operations of \$20,000. What could be a reason for this discrepancy?

• A. The company has issued new stock.
• B. The company has purchased new equipment.
• C. The company has significant accounts receivable that have not yet been collected.
• D. The company has paid off a large amount of long-term debt.

Answer: (C)