The trial balance for The Box Shop as of January 1, 2013, was as follows:

The following events affected the company during the 2013 accounting period:

1. Purchased merchandise on account that cost $8,200. 
2. The goods in event 1 were purchased FOB shipping point with freight cost of $600 cash. 
3. Returned $800 of damaged merchandise for credit on account.
4. Agreed to keep other damaged merchandise for which the company received a $400 allowance. 
5. Sold merchandise that cost $5,500 for $9,500 cash. 
6. Delivered merchandise to customers under terms FOB destination with freight costs amounting to $300 cash. 
7. Paid $5,000 on the merchandise purchased in Event 1. 

Required: 

a. Record the transactions in general journal format. 
b. Open general ledger T-accounts with the appropriate beginning balances, and post the journal entries to the T-accounts. 
c. Prepare an income statement and statement of cash flows for 2013. 
d. Explain why a difference does or does not exist between net income and net cash flow from operating activities.