5. Collections on receivables (S30.2) Here is a forecast of sales by National Bromide for the first...

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5. Collections on receivables (S30.2) Here is a forecast of sales by National Bromide for the first four months of 2022 (figures in $ thousands):

Sales $1,500 Operating costs 1,405

$95 Depreciation 6.5

$88.5 Interest 5 Pretax income $83.5 Tax at 50% 41.8 Net income $41.8

⟩ TABLE 30.12 Income statement for Dynamic Mattress for 2020 (figures in $ millions).

See Problem 2.

Notes: Dividend = $30.

Retained earnings = $11.8.

Month 1 Month 2 Month 3 Month 4 Cash sales 15 24 18 14 Sales on credit 100 120 90 70 On average, 50% of credit sales are paid for in the current month, 30% are paid in the next month, and the remainder are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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