what are the effects of these events on its financial condition 626215

During its first year of business, a company made $6,250,000 credit sales. The business collected $5,600,000 cash from customers during the year from these sales. Unfortunately, a few customers didn’t pay despite repeated requests and threats of legal action. The business cut off credit to these “deadbeat” customers and refused to make any more credit sales to them. The business had to write off $150,000 uncollectible receivables. What are the effects of these events on its financial condition?