A Firm Has Just Ended the Calendar Year Making a Sale

question 78

Multiple Choice

A firm has just ended the calendar year making a sale in the amount of $150,000 of merchandisepurchased during the year at a total cost of $112,500. Although the firm paid in full for themerchandise during the year, it has yet to collect at year end from the customer. The net profit and cash flow for the year are

• A) $0 and $150,000 respectively.
• B) $150,000 and $112,500 respectively.
• C) $37,500 and -$150,000 respectively.
• D) $37,500 and -$112,500 respectively.

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Definitions:

Replications

The repetition of an experiment or study to confirm findings or to increase precision.

Processing Time

The duration required to complete a specific task or operation.

Queue 1

Typically refers to the first in a series of waiting lines or sequences where processes or people await their turn for service.

Customer

An individual or entity that purchases goods or services from a business.