A firm has just ended the calendar year with sales of $150,000 worth of merchandise that was purchased during the year at a cost of $112,500. Although the firm paid in full for the merchandise during the year, it has yet to collect on any of the sales during the year. The gross profit and the cash flow for the year are

$0 and $150,000, respectively.

$37,500 and -$150,000, respectively.

$37,500 and -$112,500, respectively.

$150,000 and $112,500, respectively.