Accrual income versus cash flow for a period

Assignment Help Financial Management

Reference no: EM13873730

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 pro-viso 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?

ANSWER USING EXCEL, Important Note: You MUST includes your computations and formulas as required.

Reference no: EM13873730

Questions Cloud

Draw the game tree for the mall location game : Draw the game tree for this mall location game. Describe the equilibrium by using the (complete) strategies employed by each department store.

What actions have been taken by the interest groups : What actions have been taken by the interest groups

Determine the absolute pressure of the carbon dioxide : A vacuum gage indicates that the pressure of carbon dioxide in a close tank is - 10 kPa. A mercury barometer gives the local atmospheric pressure as 750 mmHg. Determine the absolute pressure of the carbon dioxide, in kPa. The density of mercury is..

Determine the absolute pressure in the tank : A vacuum gage connected to a tank reads 15 kPa at a location where the barometric reading is 750 mm Hg. Determine the absolute pressure in the tank.

Accrual income versus cash flow for a period : 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 pro-viso that they must be paid for within 30 days but can be returned for a full refund cre..

Determine the absolute pressure in the chamber : A vacuum gage connected to a chamber reads 35 kPa at a location where the atmospheric pressure is 92 kPa. Determine the absolute pressure in the chamber.

Determine cost of equity for firm : We want to determine cost of equity for Firm A. We know that Firm A’s target debt-to equity ratio is 2.00. We also know that there is a comparable firm which has exactly same lines of business and therefore is expected to have the same level of busin..

Can the price listed under stock repurchase price be quoted : When looking a company's annual report, for eg Target Corp, where in that report can i find the stock market prices of its stock? Does that report even list that? Can the price listed under stock repurchase price be quoted as the stock market price? ..

What does spiritual warfare look like in the bible : Define spiritual warfare. Does it exist? How does one identify spiritual warfare and what does spiritual warfare look like in the Bible? Provide biblical passages to support your claims.

User Account

All Pages