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 days. In 2018, Thomas shipped and billed book titles totaling $830,000. Collections, net of return credits, during the year totaled $758,315. The company spent $315,712 acquiring the books that it shipped. . Using accrual accounting and the preceding values, show the firm's net profit for the past year. . Using cash accounting and the preceding values, show the firm's net cash flow for the past year. . Which of these statements is more useful to the financial manager? Why? . 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 12/21

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 days. In 2018, Thomas shipped and billed book titles totaling $830,000. Collections, net of return credits, during the year totaled $758,315. The company spent $315,712 acquiring the books that it shipped. . Using accrual accounting and the preceding values, show the firm's net profit for the past year. . Using cash accounting and the preceding values, show the firm's net cash flow for the past year. . Which of these statements is more useful to the financial manager? Why? . 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 12/21

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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