Disucss the relationship between net income and cash flows

Reference no: EM131519983

Question: 1. How does the relationship between net income and cash flows for the period provide an indication of the quality of earnings?

2. We compared Krispy Kreme and Starbucks at the end of this chapter. What was the difference between the two companies, and why did that matter?

3. During the year, the following sales transactions occur. There is a charge of 3% on all credit card transactions. Calculate total cash sales recorded for the year.

1. Total cash sales = $400,000

2. Total check sales = $250,000

3. Total credit card sales = $500,000

Reference no: EM131519983

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