Below is the sales forecast for Cooper Inc. for the first four months of the coming year.
Jan Feb Mar Apr
Cash sales.......... $ 15,000 $ 24,000 $ 18,000 $ 14,000
Credit sales........ $100,000 $120,000 $ 90,000 $ 70,000
On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder is paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is:
Cash received from cash sales in Mar is 18 (thousand)
Cash received ...
The solution determines cash inflow for Cooper Inc.