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A firm receives cash for 30% of its sales with the remaining 70% being credit sales. Of the credit sales, 20% are collected in the
A firm receives cash for 30% of its sales with the remaining 70% being credit sales. Of the credit sales, 20% are collected in the month of sale, 60% in the month following the sale, and 20% in the second month following the sale. Forecasted sales for January through April are $400,000, $500,000, $600,000, and $400,000 respectively. What is the total cash inflow in the month of April?
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