Question

A company past experience indicates the 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale, the remainder is never collected, budgeted credit sales were: April 80,000; May 48,000; June 120,000; the cash inflow in the month of June is expected to be.

Answer 1

cash inflow=120,000*.60+48,000*.30+80,000*.05

check that.

Answer 2

227