Thomas book sales, inc., supplies textbooks to college and university bookstores. the books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. in 2018, thomas shipped and billed book titles totaling $820 comma 000. collections, net of return credits, during the year totaled $743 comma 866. the company spent $327 comma 478 acquiring the books that it shipped. a. using accrual accounting and the preceding values, show the firm's net profit for the past year. b. using cash accounting and the preceding values, show the firm's net cash flow for the past year. c. which of these statements is more useful to the financial manager? why?

1. Net income is $492,522

2. Net cash flow is $415,388

3. Cash flow statement

Explanation:

1. The formula  to compute the net profit is shown below:

= Sales - the cost of good sold

= $820,000 - $327,478

= $492,522

2. The formula to compute the net cash flow is shown below:

= Cash receipts - the cost of goods sold

= $742,866 - $327,478

= $415,388

3. For a finance manager, the cash flow statement is more useful than the income statement as the cash flow statement tells the positions of cash whereas net income tells the net profit or loss of the company.  

It does not tell how much money is to be paid, or how much collection is collected during a particular year

answer; i believe the correct answer is (treasury bills);