Question 1 ABC Corp began operations during November 2016 and sells imported furniture on a retail basis In December 2016, it sold furniture of $250,000, of which $100,000 was on credit The cost of furniture that was sold by ABC was $200,000 and this was delivered by the supplier during December However, the supplier has granted credit terms, according to which ABC paid $50,000 in December 2016 and it is obligated to pay remaining amount in January 2017 In addition to the purchase and sale of furniture in December, ABC paid $10,000 in cash for salaries Further, ABC incurred utility expense of $15,000 and advertisement cost of $25,000 in December, which will be paid in January, 2017 In December, creditors were paid $50,000 for the furniture purchased and sold in November 2016 (show all your workings) How much was ABCs net cash flow for December 2016 1 Mark How much was ABCs net profit for December 2016 1 Mark Question 1 ABC Corp began operations during November 2016 and sells imported furniture on a retail basis In December 2016, it sold furniture of $250,000, of which $100,000 was on credit The cost of furniture that was sold by ABC was $200,000 and this was delivered by the supplier during December However, the supplier has granted credit terms, according to which ABC paid $50,000 in December 2016 and it is obligated to pay remaining amount in January 2017 In addition to the purchase and sale of furniture in December, ABC paid $10,000 in cash for salaries Further, ABC incurred utility expense of $15,000 and advertisement cost of $25,000 in December, which will be paid in January, 2017 In December, creditors were paid $50,000 for the furniture purchased and sold in November 2016 (show all your workings) How much was ABCs net cash flow for December 2016 1 Mark How much was ABCs net profit for December 2016 1 Mark

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Question 1 ABC Corp. began operations during November 2016 and sells imported furniture on a retail basis. In December 2016, it sold furniture of $250,000,

Question 1

ABC Corp. began operations during November 2016 and sells imported furniture on a retail basis. In December 2016, it sold furniture of $250,000, of which $100,000 was on credit. The cost of furniture that was sold by ABC was $200,000 and this was delivered by the supplier during December. However, the supplier has granted credit terms, according to which ABC paid $50,000 in December 2016 and it is obligated to pay remaining amount in January 2017. In addition to the purchase and sale of furniture in December, ABC paid $10,000 in cash for salaries. Further, ABC incurred utility expense of $15,000 and advertisement cost of $25,000 in December, which will be paid in January, 2017. In December, creditors were paid $50,000 for the furniture purchased and sold in November 2016 (show all your workings).

How much was ABCs net cash flow for December 2016? [1 Mark]
How much was ABCs net profit for December 2016? [1 Mark]
Question 1

ABC Corp. began operations during November 2016 and sells imported furniture on a retail basis. In December 2016, it sold furniture of $250,000, of which $100,000 was on credit. The cost of furniture that was sold by ABC was $200,000 and this was delivered by the supplier during December. However, the supplier has granted credit terms, according to which ABC paid $50,000 in December 2016 and it is obligated to pay remaining amount in January 2017. In addition to the purchase and sale of furniture in December, ABC paid $10,000 in cash for salaries. Further, ABC incurred utility expense of $15,000 and advertisement cost of $25,000 in December, which will be paid in January, 2017. In December, creditors were paid $50,000 for the furniture purchased and sold in November 2016 (show all your workings).
How much was ABCs net cash flow for December 2016? [1 Mark]
How much was ABCs net profit for December 2016? [1 Mark]