In 300 words asnwer the 2 questions below in regards to the Importance of Cash Flow
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Question 1
Without classification: With Classification:
Overall gain $60,000 Net Income $60,000
Records Receivable ($80,000) Accounts Receivable ($0)
Net Cash ($20,000) Net Cash ($20,000)
Reclassifying records of sales to creditor liabilities take what was a transient instalment and make it into a long-haul payment. It is moral to do it along these lines since you are as yet accepting your cash a little more than a more drawn out period,
(301 words)