Weary, Inc. has variable credit terms for its customers depending on their credit worthiness. All customers can pay cash and receive a 10% discount. Half of the credit customers qualify for credit terms that let them pay two months after the sale The remaining 50% must pay in the month following the sale. Only 20% of their customers take the discount and pay in the month of purchase. Sales in October are $40,000 and sales for November are projected to be $45,000. Calculate cash inflows from sales in November.

Question

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For November cash inflows, we consider October and November sales. 20% of customers pay in the month of purchase with a 10% discount, so for November sales ($45,000), this is $45,000 * 20% * 90% = $8,100. From October sales ($40,000), 50% pay the following month, so $40,000 * 50% = $20,000. Adding these amounts gives $8,100 (November's immediate payments) + $20,000 (October's credit payments) = $28,100. The correct answer is not listed, indicating a potential mistake in calculation or in the provided options.