Question: Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of merchandise purchased during the year at a total

Johnson, Inc. has just ended the calendar year making a sale in the amount of $10,000 of merchandise purchased during the year at a total cost of $7,000. Although the firm paid in full for the merchandise during the year, it has yet to collect at year-end from the customer. The net profit and cash flow from this sale for the year are
A. $3,000 and $10,000 respectively
B. $3,000 and -$7,000 respectively
C. $7,000 and -$3,000 respectively
D. $3,000 and $7,000 respectively

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