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.

























Item




October




November




December




Sales



400,000



350,000



450,000




Purchases



350,000



340,000



420,000




Jun 08, 2022
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