Abrams, Bentley, Cable & Dent, partners of a manufacturing firm operating in a free-choice accounting country, disagree on their preferred revenue recognition method:

1. Abrams wishes to recognize revenue when an order is received.
2. Bentley wishes to recognize revenue at the time of production.
3. Cable wishes to recognize revenue at the time of shipment.
4. Dent wishes to recognize revenue when cash is collected.

After the first year of operations, Cable would recognize revenue of 100,000, with ending inventory of 30,000 and ending accounts receivable of 50,000. Backorders, for which production has not yet started, have a sales value of 10,000.

1. Assuming the company charges a markup of 100% over cost, determine the revenue, costs of goods sold and gross profit for under each partners chosen method.
2. Ignoring income taxes, state which company would have the largest cash balance at year end.
3. State which company would report the largest cash from operations.