PERFORMANCE TASK # 3 HOW FINANCIAL MANAGER DECIDES? In a review of the company's income statement, you are amazed to see a 25% increase over last month's sales! As financial manager, concerned about the lack of cash in company's checking account. How would you explain this situation using the direct method of income statement? Write your answer on the answer sheet Even though our sales was up by 25%. that is on the accrual basis. Since those customers have net 30 terms. so we only collected based on the previous month's sales. By next month, our cash flow should be back an Even though our sales was up by 25%, since the customers are delinquent on their payment were going to have cash flow problems. is the accounts receivable department not doing their job We had lots of expenses this month with the higher sales, so we had to borrow money. I will have accounts payable hold some payments until we receive more cash REQUIREMENT: ADD 3 MORE SENTENCES TO SUPPORT AND EXPOUND YOUR ANSWER. CHOICES PERFORMANCE TASK # 3 HOW FINANCIAL MANAGER DECIDES? In a review of the company's income statement, you are amazed to see a 25% increase over last month's sales! As financial manager, concerned about the lack of cash in company's checking account. How would you explain this situation using the direct method of income statement? Write your answer on the answer sheet Even though our sales was up by 25%. that is on the accrual basis. Since those customers have net 30 terms. so we only collected based on the previous month's sales. By next month, our cash flow should be back an Even though our sales was up by 25%, since the customers are delinquent on their payment were going to have cash flow problems. is the accounts receivable department not doing their job We had lots of expenses this month with the higher sales, so we had to borrow money. I will have accounts payable hold some payments until we receive more cash REQUIREMENT: ADD 3 MORE SENTENCES TO SUPPORT AND EXPOUND YOUR ANSWER. CHOICES