Two Wheeler, a bike shop, opened for business on April 1. It uses a periodic inventory system….

Two Wheeler, a bike shop, opened for business on April 1. It uses a periodic inventory system. The following transactions occurred during the first month of business:

Required 1. Identify and analyze each of the preceding transactions of Two Wheeler. 2. Determine net income for the month of April. Two Wheeler incurred and paid $100 for rent and $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income taxes.) 3. Assuming that these are the only transactions during April (including rent and miscellaneous expenses), compute net cash flow from operating activities. 4. Explain why cash outflow is so much larger than expenses on the income statement.

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