Clopton Inc.forecasts cash sales of $18 million in January,$23 million in February and $25 million in March.Credit sales in these three months are forecast at $80 million,$110 million and $145 million.On average 50% of credit sales are paid for in the current month,30% in the next month,and the remainder in the following month.What is the expected cash inflow in March?

Question

Quizplus · Accepted Answer

CF = 25 + (0.5 × 145) + (0.3 × 110) + (0.2 × 80) = $146.5 million