MNO Company's credit sales policy is to have: 50% of the sales amount in cash 30% collected after one month 20% after two months. The purchasing policy is to pay 60% in cash and the rest is to be paid...

MNO Company's credit sales policy is to have:

• 50% of the sales amount in cash


• 30% collected after one month


• 20% after two months.


• The purchasing policy is to pay 60% in cash and the rest is to be paid after one month.

Required:

1. Calculate the net accounting profit for December.


2. Calculate the net cash flow for December.


3. Comment on the difference between the two previous answers.