Paris Croissant is running a bakery caf business.

• In order to make croissants, the store purchased flour, sugar, and cream cheese for $800 today. Such a purchase used $200 in cash; and the rest is financed by a line of credit provided by its supplier.
• The croissants are sold on credit for $1,050 next year.
• The store obtains the receivables and pays off the payables in two years.

#6: What are the cash flows of Paris Croissant for each year?

Cash Flow: Year 0 is -200

Cash Flow: Year 1 is 0

Cash Flow: Year 2 is 450

What are the (accounting) profits of Paris Croissant for each year?

Profit: Year 0 is

Profit: Year 1 is

Profit: Year 2 is