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    Determining Cash Inflow

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    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:

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    Solution Preview

    Cash received from cash sales in Mar is 18 (thousand)
    Cash received ...

    Solution Summary

    The solution determines cash inflow for Cooper Inc.