Windy City Kite Company has prepared sales forecasts for the beginning of Year 3 as shown in the top row of the table. Half of Windy City's kite sales are cash and the other half are credit. Windy City collects credit sales the month following the credit sale. What are Windy City's total cash inflows from customers for January? Windy City Kite Company
Sales Forecast and Collections Forecast
$$\begin{array} { | l | c | c | c | }
\hline & \text { December } & \text { January } & \text { February } \
\hline \text { Sales Forecast } & \$ 1,100 & \$ 1,000 & \$ 2,000 \
\hline \text { Cash Collections } & & & \
\hline \text { Collections from Sales } & & & \
\text { last month } & & & \
\hline \text { Total Cash Inflows } & & & \
\hline
\end{array}$$

Question

Windy City Kite Company has prepared sales forecasts for the beginning of Year 3 as shown in the top row of the table. Half of Windy City's kite sales are cash and the other half are credit. Windy City collects credit sales the month following the credit sale. What are Windy City's total cash inflows from customers for January? Windy City Kite Company
Sales Forecast and Collections Forecast
$$\begin{array} { | l | c | c | c | } 
\hline & \text { December } & \text { January } & \text { February } \
\hline \text { Sales Forecast } & \$ 1,100 & \$ 1,000 & \$ 2,000 \
\hline \text { Cash Collections } & & & \
\hline \text { Collections from Sales } & & & \
\text { last month } & & & \
\hline \text { Total Cash Inflows } & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

In January, Windy City will collect $500 from cash sales (half of January's $1,000 sales) and $550 from December's credit sales (half of December's $1,100 sales), totaling $1,050.

Windy City Kite Company Has Prepared Sales Forecasts for the Beginning