A firm has just ended the calendar year making a sale in the amount of $150,000 of merchandise purchased during the year at a total cost of $112,500. Although the firm paid full for the merchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow for the year are _____
$0 and $150,000 respectively, $37,500 and -$155,000 respectively, $37,500 and -$112,500 respectively, or $150,000 and $112,500 $37,500 respectively
please advise answer & why - thanks!© BrainMass Inc. brainmass.com June 3, 2020, 5:40 pm ad1c9bdddf
Answer is: $37,500 and -$112,500
Net profit: On accrual basis so it ...
The expert examines net profits and cash flows.