Reference no: EM133186969

Question - Mr Huy Anh, the owner-manager of a small business enterprise, had carefully monitored his cash position over the past financial year, and was pleased to note at the end of the year that the cash position was strong, and had shown a healthy 50% increase over the year. When presented with his statement of financial performance for the year, he was dismayed to note that the gross profit earned in the last year had deteriorated significantly and had become a loss for the current period. In his anger, he accuses you of having made errors in the accounting since 'such a silly situation could not possibly exist." How would you respond to Mr Huy Anh?