Here is a forecast of sales by National Bromide for the first four months of 2013 (figures
Question:
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?
Transcribed Image Text:
Month 1 Month 2 24 120 Month 3 Month 4 15 18 90 Cash sales 14 Sales on credit 100 70
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To calculate cash inflow we multiple the credit sales coll...View the full answer
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Related Book For
Principles of Corporate Finance
ISBN: 978-0078034763
11th edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen
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