UK Year credit

[Mark Stephens]

Hello, could someone please give me some advice on the below question to identify what effect this will have on both profit and cash flow ?.
What is the effect on both profit and cash flow with Sales on credit of £100,000 (at 50% contribution margin) made just before the year-end?
Any help would be greatly appreciated.
Thanks
Mark

 

[Fidget]

It will increase profit but have no effect on cash flow as the sales have been made on credit terms and so haven't been paid yet.

 

[Mark Stephens]

It will increase profit but have no effect on cash flow as the sales have been made on credit terms and so haven't been paid yet.

Thankyou Fidget