Forecasting Cash Flows Crown Company started business on January 1, 2001, and anticipated sales of

$50,000, $100,000, $200,000 and $150,000, for the months of January, February, March, and April, respectively. Cash collections are expected to be 50 percent in the month of sale, 40 percent in the second month, and 10 percent in the third month. Inventory is purchased and paid for in the month of sale. Sale price is based on cost plus a 100 percent markup on the cost of inventory. Other operating costs for the four months are expected to be $24,000, $30,000,

$40,000 and $50,000, respectively. Compute the amount of expected net cash flow for each of the periods. In which period is the largest cash flow expected to occur? Is the outcome consistent with your expectations based on total monthly sales? Explain your answer.