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Splitterfield Foods Forecasts the Following Sales and Expenses: June

Question 54

Multiple Choice

Splitterfield Foods forecasts the following sales and expenses: June
July
August
Sales ($ millions)
120
150
160
Purchases of raw materials ($ millions)
70
80
85
Other expenses ($ millions)
30
38
40
Seventy percent of sales are paid for in the same month and the remainder with a delay of one month.All raw materials are paid for with a delay of one month,other expenses are paid with no delay.What is the expected cash flow from operations in July?


A) $29.5 million.
B) $32 million.
C) $33 million.
D) $20 million.

Correct Answer:

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