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

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

Question

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

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

Quizplus · Accepted Answer

The expected cash inflow in March consists of: - 50% of March's credit sales (£90,000 * 50% = £45,000) - 30% of February's credit sales (£120,000 * 30% = £36,000) - 20% (the remainder) of January's credit sales (£100,000 * 20% = £20,000) - Plus all of March's cash sales (£18,000) Adding these together gives: £45,000 + £36,000 + £20,000 + £18,000 = £119,000.

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