Accrual income versus cash flow

Assignment Help Financial Management

Reference no: EM13975263

Accrual income versus cash flow for a period Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2014, Thomas shipped and billed book titles totaling $760,000. Collections, net of return credits, during the year totaled $690,000. The company spent $300,000 acquiring the books that it shipped.

a. Using accrual accounting and the preceding values, show the firm’s net profit for the past year.

b. Using cash accounting and the preceding values, show the firm’s net cash flow for the past year.

c. Which of these statements is more useful to the financial manager? Why?

Reference no: EM13975263

Questions Cloud

Computer and statistical software : Note: For many of the Exercises 3.48-3.64, a computer and statistical software will be desirable and useful.

Are these system specifications consistent : Are these system specifications consistent? "The system is in multiuser state if and only if it is operating normally. If the system is operating normally, the kernel is functioning.

What are three legal issues that were involved : What are three legal issues that were involved with the ford pinto case? Include examples and APA citations I also need them very quickly. The more quickly the better.

What is burden of proof : To answer this question, you must understand the interrelationship between the standard of burden of proof in criminal and civil cases. Please answer these questions. [Note: Just do your best on these. Neither the slides nor the notes provide abso..

Accrual income versus cash flow : Accrual income versus cash flow for a period Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit..

Approximate percentage of scores : a. What is the approximate percentage of scores that were between 380 and 580? b. What is the approximate percentage of scores that were above 680?

Purchase occurred in which market : Valerie bought 200 shares of Able stock today. Able stock has been trading for some time on the NYSE. Valerie's purchase occurred in which market?

What is the expected net present value : Assume now that market conditions are longer lasting so the developments in year 1 are carried over to year 2. Thus, if NB1 is 50, then NB2 is also 50. Likewise, if NB1 is 150, then NB2 is also 150. What is the expected net present value (with the di..

Problem regarding the percentage-occupancy rates : For a sample of eight apartment buildings in Chicago, the percentage-occupancy rates during a recent month were as shown below:

User Account

All Pages