PRACTICE · LEVEL 1 · ABOUT 4 MIN
Not triedPredict it: one transaction, three statements
Sells goods for $100 on credit. They cost $60 from inventory.
Before you look: what happens to net income, to cash, and to cash flow from operations?
Assumptions
- An assumed 25% tax rate, paid in cash in the same period.
- Accrual accounting. Amounts in dollars; use a minus sign for decreases.
Set 1 of 7