You are in the business of selling rugs and use the FIFO method of inventory costing. The inventory available for sale for a particular style of rug is as follows: Inventory Purchase DateCurrent InventoryCostJune 144at 1,400 eachJune 213at1,500 eachJuly 56at 1,700 eachYou immediately replace those rugs with 3 new rugs at a cost of2,300 apiece. Respond to the following in a minimum of 175 words: What is your gross profit from the sale of the rugs? What is your net cash flow from the sale of the rugs and the subsequent purchase of 3 new rugs? Why is there a substantial difference between gross profit and cash flow? What other circumstances can lead to differences like those illustrated in this case?