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 proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2018, Thomas shipped and billed book titles totaling $720,000. Collections, net of return credits, during the year totaled $651,637. The company spent $285,058 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? a. Using accrual accounting and the preceding values, show the firm's net profit for the past year in the following table. (Round to the nearest dollar.) Accounting View (accrual basis) Thomas Book Sales, Inc. Income Statement for the Year Ended 12/31 Sales revenue Less: Costs Net profit ai at b. Usina cash accounting and the precedina values. show the firm's net cash flow for the past vear in the followina table. (Round to the nearest dollar.) ce Click to select your answer(s). Tools > ere to search
Depending on how many paintings there were you would divide that number by 129 to figure out how long it took to complete one painting. Hope this helps.
