Difference between net income and cash flow

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Reference no: EM132031741

1. Myron apparently thought that high profits guaranteed adequate cash to pay any bills as they came due. Explain to Myron the difference between Net Income and Cash Flow. In particular, explain how even a profitable, highly efficient firm can experience cash crunches and have a need for outside capital

2. In an attempt to encourage dealers to pay sooner, Myron offered terms of 2/10 net 90. Do you find it surprising that only 10% of his customers took advantage of the discount and paid within 10 days? Defend your answer.

Reference no: EM132031741

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