A business reports $346,000 net income (profit) for the year just ended. Determine two valid scenarios for changes in its assets and liabilities resulting from its profit for the year.
A business reports $3,800,000 loss for the year just ended. Determine two valid scenarios for changes in its assets and liabilities resulting from its loss for the year.
A business reports $5,250,000 net income for the year just ended. In its statement of cash flows for the year, the business reports that its cash flow from operating activities (from its profit for the year) is $4,650,000. In other words, its cash balance increased $4,650,000 from its profit-making activities for the year. Determine two valid scenarios for changes in assets other than cash and in liabilities that result from its profit for the year.