Brad Corp expects to make sales of $80 million in January.In February forecast sales are $90 million,and in March they are $60 million.On average 50% of sales are paid for in the current month,30% are paid for in the next month,and the remainder in the following month.What is the expected cash flow from operations in March?

Question

Quizplus · Accepted Answer

Cash flow = (0.5 × 60) + (0.3 × 90) + (0.2 × 80) = $73 million

Brad Corp Expects to Make Sales of $80 Million in January.In