Here is a forecast of sales by National Bromide for the first four months of 201
ID: 2734058 • 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 15 24 18 14
Sales on credit 100 120 90 70
On the average 50% of credit sales are paid for in the current month, 30% 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? (Enter your answers in thousands.)
Expected Cash Inflow from Operations
Month 3 $
Month 4 $
Explanation / Answer
Expected Cash Flow from Operations in 3rd and 4th Month are $119 and $86 respectively.
Month Cash Sales (A) Credit Sales Cash Flow from Credit Sales (B) Total Cash Flow (A+B) 1 15 100 50 65 2 24 120 30+60 114 3 18 90 20+36+45 119 4 14 70 24+27+35 86Related Questions
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