Question
A company expects that 90% of its sales will be on account and 10% will be in cash. It expects that 60% of its sales
A company expects that 90% of its sales will be on account and 10% will be in cash. It expects that 60% of its sales on account will be collected in the month of sale, 25% will be collected in the month following the month of sale, and 15% will be collected two months after the month of sale. It expects the following sales. Month Expected sales
January $900,000
February $850,000
March $700,000
April $650,000
May $575,000
June $500,000
July $400,000
What is the companys expected April cash inflow?
What is the companys expected accounts receivable balance on April 30?
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