Question:

a} Determine the net cash flows for periods 1 through 3 for a firm with the following transactions: $1,0[10 spent in period 1 and $2,600 spent in period 2 to produce goods to be sold in the following periods, sales of $2,000 in period 2 and $4,000 in period 3, one half of all sales are in cash with the other half collected in the following period. Use the following answer format Changein accounts receivable Changein inventories Net cash flow