- #1
karush
Gold Member
MHB
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1. Johns Inc.has just ended the calendar year making a sale in the amount of \$10,000
of merchandise purchased during the year at a total cost of \$7,000.
Although the firm paid in full the merchandise during the year.
it has yet to collect at year end from the customer.
The net profit and cash flow from this sale for the year are.
A. \$3000 and \$10,000 respectively
B. \$3000 and -\$7,000 respectively
C. \$7,000 and -\$3,000 respectively
D. \$3000 and \$7,000 respectively
I choose B but not sure how cash flow is mesnt here
of merchandise purchased during the year at a total cost of \$7,000.
Although the firm paid in full the merchandise during the year.
it has yet to collect at year end from the customer.
The net profit and cash flow from this sale for the year are.
A. \$3000 and \$10,000 respectively
B. \$3000 and -\$7,000 respectively
C. \$7,000 and -\$3,000 respectively
D. \$3000 and \$7,000 respectively
I choose B but not sure how cash flow is mesnt here
