Thomas BookSales,Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In2014,Thomas shipped and billed book titles totaling$750,000.

Collections,net of returncredits,during the year totaled$678,002.The company spent

$288,474acquiring the books that it shipped.

a.Using accrual accounting and the precedingvalues,show thefirm'snet profit for the past year in the following table.(Roundto the nearestdollar.)

Accounting View

(accrualbasis)

Sales revenue:

Less:Costs

Net profit:

b.Using cash accounting and the precedingvalues,show thefirm'snet cash flow for the past year in the following table.(Roundto the nearestdollar.)

Financial View

(cashbasis)

Cash inflow:

Less:Cash outflow

Net cash flow: