Omar sells goods entirely on credit.In respect of sales in any given month, he expects 50% to be paid for in the next following month, 40% in the month after that and the final 10% in the month after that.(So, for example, 50% of sales made on credit in January would be received in February, 50% in March and 10% in April). Budget data relating to 5 months' worth of Omar's sales are as follows:
Omar is currently preparing his cash flow forecast for June.How much should he include as forecast sales receipts for that month?

Question

Omar sells goods entirely on credit.In respect of sales in any given month, he expects 50% to be paid for in the next following month, 40% in the month after that and the final 10% in the month after that.(So, for example, 50% of sales made on credit in January would be received in February, 50% in March and 10% in April). Budget data relating to 5 months' worth of Omar's sales are as follows:
 Omar is currently preparing his cash flow forecast for June.How much should he include as forecast sales receipts for that month?

Quizplus · Accepted Answer

The Answer of Omar sells goods entirely on credit.In respect of sales in any given month, he expects 50% to be paid for in the next following month, 40% in the month after that and the final 10% in the month after that.(So, for example, 50% of sales made on credit in January would be received in February, 50% in March and 10% in April). Budget data relating to 5 months' worth of Omar's sales are as follows:
 Omar is currently preparing his cash flow forecast for June.How much should he include as forecast sales receipts for that month?

Omar Sells Goods Entirely on Credit