17. Why may net cash flow from operating activities on the cash flow statement be different from the amount of net income reported on the income statement?

The net income makes reference to the revenues less the expenses recognized in a reported period. While the net cash flow address the changes in ending cash balances from period the period. The cash flow usually does not consider expenses such as depreciation, amortization, and so on, but that shall take part in the net income, which address the utilities of the company in the calculated period.

Step-by-step explanation:

To calculate the net income is necessary to deduct from the total revenue, the operational expenses, the amortization, interest, taxes, depreciation and other deductions associated to the functioning of the company. It basically represents the utility of the company in the respective calculation period.

The cash flow summarizes the amount of cash and cash equivalents, and the cash flow from operating activities do not consider the incomes associated to long term investments, as well as all the inflows and outflows coming from long term assets.

These two statements differ in the way as the expenditures are considered, because in the cash flow, deductions as depreciation are no considered as a cash flow, while in the net income are considered to determine the utilities during the calculated period.