The following credit sales are budgeted by Roswell Company:
The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is:

Question

The following credit sales are budgeted by Roswell Company:
 The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is:

Quizplus · Accepted Answer

The anticipated cash inflow for the month is $60,000. (($60,000 x .7) + (70,000 x .2) + (50,000 x .08))

The Following Credit Sales Are Budgeted by Roswell Company