Here is a forecast of sales by National Bromide for the first four months of 201
ID: 2720869 • Letter: H
Question
Here is a forecast of sales by National Bromide for the first four months of 2013 (figures in $ thousands): Month 1 Month 2 Month 3 Month 4 Cash sales 27 36 30 26 Sales on credit 220 240 210 190 On the average 52% of credit sales are paid for in the current month, 32% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4? (Do not round intermediate calculations. Enter your answers in thousands rounded to 1 decimal place.) Expected Cash Inflow from Operations Month 3 $ Month 4 $
Explanation / Answer
National Bromide
Cash inflow from Operations( in thousands)
Particulars
Month 1
Month 2
Month 3
Month 4
Cash sales
$ 27.00
$ 36.00
$ 30.00
$ 26.00
Credit Sales
$ 220.00
$ 240.00
$ 210.00
$ 190.00
Cash inflow:
Collections from Cash Sales
$ 27.00
$ 36.00
$ 30.00
$ 26.00
Cash receipt from Current month credit Sales @52%
$ 114.40
$ 124.80
$ 109.20
$ 98.80
Cash receipt from Previous month credit Sales @32%
$ 70.40
$ 76.80
$ 67.20
Cash receipt from Previous 2 months credit Sales @16%
$ 35.20
$ 38.40
Cash inflow from Operations( in thousands)
$ 141.40
$ 231.20
$ 251.20
$ 230.40
Expected cash inflow from operations :
Month 3= $251,200
Month 4= $230,400
National Bromide
Cash inflow from Operations( in thousands)
Particulars
Month 1
Month 2
Month 3
Month 4
Cash sales
$ 27.00
$ 36.00
$ 30.00
$ 26.00
Credit Sales
$ 220.00
$ 240.00
$ 210.00
$ 190.00
Cash inflow:
Collections from Cash Sales
$ 27.00
$ 36.00
$ 30.00
$ 26.00
Cash receipt from Current month credit Sales @52%
$ 114.40
$ 124.80
$ 109.20
$ 98.80
Cash receipt from Previous month credit Sales @32%
$ 70.40
$ 76.80
$ 67.20
Cash receipt from Previous 2 months credit Sales @16%
$ 35.20
$ 38.40
Cash inflow from Operations( in thousands)
$ 141.40
$ 231.20
$ 251.20
$ 230.40
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