Accrual versus Cash-Based Revenue. Refer to the preceding problem. Suppose Heinz measured performance on the cash basis

Question:

Accrual versus Cash-Based Revenue. Refer to the preceding problem. Suppose Heinz measured performance on the cash basis instead of the accrual basis. Compute the net cash inflows during May. Which measure, net income or net cash inflows, provides a better measure of overall performance? Why?

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