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polet [3.4K]
3 years ago
14

ABC buys widgets for $5 cash and sells them on account for $8. At the point of sale, what is the effect on the cash flow of ABC?

Business
1 answer:
Ivenika [448]3 years ago
4 0

Explanation: The effect is that ABC will get a $3 profit, because ABC got the widgets for $5, but sells them for $8. That is the effect on the cash flow. Hope this helps!

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