XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accountspayables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to a. Fill the table. b. What does it mean to have negative cash flow while thecompany is making profits? c. Provide recommendations to XYZ company. \table[[Month, Jan., Feb., March, April, May], [Sales, $125,000,,,,], [COGS, $110,000,,,,], [Cash inflow,...], [Cash Outflow,...], [\table [[Accounting Net], [Profit/Loss]],.,,,], [NCF,,,,, ]] 1. XYZ Company sells books to universities. The company policy is to sell 60% cash and therest in a form of accounts receivables to be collected after 3 months, the cost should bepaid 65% cash and the rest in a form of accounts payables to be paid after 1 months.Assuming that the company sales increase by 9% monthly and its COGS increases by 7%monthly. The required is toFill the table.MonthSalesCOGSCash inflowCash Outflowa.b.What does it mean to have negative cash flow while the company ismaking profits?c. Provide recommendations to XYZ company.March AprilAccounting NetProfit/LossNCFJan.$125,000$ 110,000Feb.May

The difference between a company's total revenue and total costs over a given period is known as…

1. XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accounts payables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to Fill the table. What does it mean to have negative cash flow while the company is making profits? c. Provide recommendations to XYZ company. April Month Sales COGS Cash inflow Cash Outflow a. b. Accounting Net Profit/Loss NCF Jan. $125,000 $ 110,000 Feb. March May

1. XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accounts payables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to Fill the table. What does it mean to have negative cash flow while the company is making profits? c. Provide recommendations to XYZ company. April Month Sales COGS Cash inflow Cash Outflow a. b. Accounting Net Profit/Loss NCF Jan. $125,000 $ 110,000 Feb. March May

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accounts
payables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to a. Fill the table. b. What does it mean to have negative cash flow while the
company is making profits? c. Provide recommendations to XYZ company. \table[[Month, Jan., Feb., March, April, May], [Sales, $125,000,,,,], [COGS, $110,000,,,,], [Cash inflow,...], [Cash Outflow,...], [\table [[Accounting Net], [
Profit/Loss]],.,,,], [NCF,,,,, ]]

1. XYZ Company sells books to universities. The company policy is to sell 60% cash and the
rest in a form of accounts receivables to be collected after 3 months, the cost should be
paid 65% cash and the rest in a form of accounts payables to be paid after 1 months.
Assuming that the company sales increase by 9% monthly and its COGS increases by 7%
monthly. The required is to
Fill the table.
Month
Sales
COGS
Cash inflow
Cash Outflow
a.
b.
What does it mean to have negative cash flow while the company is
making profits?
c. Provide recommendations to XYZ company.
March April
Accounting Net
Profit/Loss
NCF
Jan.
$125,000
$ 110,000
Feb.
May

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