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    Calculating expected cash flow in the given months.

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    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?

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    Solution Preview

    Expected cash inflow in month 3
    =Cash sales in month 3+50% of credit sales in month ...

    Solution Summary

    This solution calculates the expected cash inflow from operations in the given months.