Answer:
The answer is:
Gross profit= $3,000
Net change in cash flow is the inflow of $7,000 to be collected from customers.
Explanation:
Gross profit equals Revenue minus Cost of Sales.
Revenue is $7,000
Cost of sales is $4,000
Therefore, gross profit =
$7,000 - $4,000
=$3,000.
Net change in cash flow from operating activities will be the inflow of $7,000 that will be collected from customers.
Cash collected from customers is a line item in cash flow under operating activities section.
