A company has current cash balance of $7000, trade receivables of $15000 and trade payables of $40000. The company can sell goods costing $50,000for $70,000next month.

one half of all sales are collected in the month of sales and the remainder in thee following month. All purchases are made on credit and paid during the following month. Inventory level will remain constant during the month. General cash expenses will be $60,000 during the month

in book's solution, they included half of current month's sale .. i don't get it