This workout asks us, when would the following firms receive cash from their customers and when would they record revenue? So we've got two things happening, firstly cash flow, secondly revenue We'll start with P&O cruises P&O probably get bookings from their customers many months before the cruise actually happens So we're gonna find that they're gonna receive cash on booking, so cash first But then only find they record their revenue when the cruise occurs. That could be many months later Walmart retail store, they're gonna be selling us groceries. We're probably gonna find that the cash flow and the revenue recognition both happen at the same time. But why is that? Because they receive the cash and the record the revenue when the product is sold Next up, Manchester Utds season ticket sale. So they're going to sell this ticket prior to the start of the football season So cash will be received early. But when can they record the revenue? They can only record the revenue as each match occurs Remember we can only recognize revenue upon product delivery or service delivery And in this case providing a service, watching a football match Lastly EDF energy, they're going to be providing you with your electricity maybe? What EDF are going to do, is they're going to provide the electricity to you and record the revenue as the energy is used during the period So revenue recognition happens first When does the cash flow happen? Well they're going to bill the cash at the end of the period and receive cash from their customer at the end of the period So EDF energy record revenue first and then the cash flow will happen later