Question 1 ABC Corp. began operations in 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 the furniture that was sold by ABC was $200,000, and this was delivered by the supplier during December. However, the supplier has been granted credit terms, according to which ABC paid $50,000 in December 2016, and it is obligated to pay the remaining amount in January 2017. In addition to the purchase and sale of furniture in December, ABC paid $10,000 in cash for salaries. In addition, ABC incurred a utility expense of $15,000 and an 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 workings). a) How much was ABC's net cash flow for December 2016? (2 Mark) b) How much was ABC's net profit for December 2016? (2 Mark)