Thomas shipped and billed book titles totaling $740,000. Collections, during the year totaled $670,404. The company spent $295,118 acquiring the books that it shipped. a. Using accrual accounting and the preceding values, show the firm's net profit for the past year. b. Using cash accounting and the preceding values, show the firm's net cash flow for the past year. c. Explain why the accrual and cash accounting methods show different net profits. How do the two profit figures provide different information to the financial manager? a. Using accrual accounting and the preceding values, show the firm's net profit for the past year in the following table. (Round to the nearest dollar.) b. Using cash accounting and the preceding values, show the firm's net cash flow for the past year in the following table. (Round to the nearest dollar.) c. Explain why the accrual and cash accounting methods show different net profits. How do the two profit figures provide different information to the financial manager? (Select the best answer below.) 4. The income statement is more useful because it recognizes revenues at the time of sale (whether payment has been received or not) and recognizes expenses when they are incurred. collected and, as a result, will not contribute to the wealth of the owners. 2. The cash flow statement is more useful because it recognizes revenues at the time of sale (whether payment has been received or not) and recognizes expenses when they are incurred. collected and, as a result, will not contribute to the wealth of the owners