Here is a forecast of sales by National Bromide for the first four months of 2010 (figures in $ thousands):
Month 1 Month 2 Month 3 Month 4
Cash Sales 15 24 18 14
Sales on credit 100 120 90 70
On average 50% of credit sales are paid for in the current month, 30% are paid in the next month, and the remainder is paid in the month after that.
What is the expected cash inflow from operations in months 3 and 4?© BrainMass Inc. brainmass.com October 10, 2019, 3:16 am ad1c9bdddf
Expected cash inflow in month 3
=Cash sales in month 3+50% of credit sales in month ...
This solution calculates the expected cash inflow from operations in the given months.