The Houdini Magic Shoppe has forecast its sales and purchases for the last 4 months of 2020.

Sales are as follows (September to December): 2100, 1300, 2300, 2800
Purchases are as follows (September to December): 1400, 1700, 2900, 1900

Sixty percent of sales are on credit, while the rest are cash sales. On the basis of past experience, 40% of the accounts receivable are collected the month after the sale and 60% are collected 2 months after the sale.

Purchases are paid the month following the purchase. The firm has a cash balance of $5,000 on hand as at October 1, and has a minimum required cash balance of $4,000.

Enter the following information:
Credit Sales for November? =  

Cash Inflow for December? =   

Cash Outlfow for November? =   

Net Cash Flow for December? =   

Ending Cash Balance for November? =

Answer rating: 100% (QA)

Before starting lets outline the steps to find each piece of information requested 1 Calculate Credit Sales for November 2 Calculate Cash Inflow for D... View the full answer