Shown below is the sales forecast for Kalin Inc. for the first four months of the coming year.
$\begin{array}{lrrrrrr}
&\text { Jan } & \text { Feb } & \text { Mar } & \text { Apr }\
\text { Cash sales } & \$ 15,000 & \$ 24,000 & \$ 18,000 & \$ 14,000 \
\text { Credit sales } & \$ 100,000 & \$ 120,000 & \$ 90,000 & \$ 70,000
\end{array}$

On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: (CMA adapted)

Question

Shown below is the sales forecast for Kalin Inc. for the first four months of the coming year.
$\begin{array}{lrrrrrr}
&\text { Jan } & \text { Feb } & \text { Mar } & \text { Apr }\
\text { Cash sales } & \$ 15,000 & \$  24,000 & \$ 18,000 & \$ 14,000 \
\text { Credit sales } & \$ 100,000 & \$ 120,000 & \$ 90,000 & \$ 70,000
\end{array}$

On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: (CMA adapted)

Quizplus · Accepted Answer

In March, cash inflow includes: March cash sales ($18,000), 50% of March credit sales ($45,000), 30% of February credit sales ($36,000), and 20% of January credit sales ($20,000). Total = $18,000 + $45,000 + $36,000 + $20,000 = $119,000.

Shown Below Is the Sales Forecast for Kalin Inc On Average, 50% of Credit Sales Are Paid for in the First