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Cash inflows from sales Budgeted sales are: Month Sales revenue August $10,000 September $19,000 October $12,000 November $19,000 December $14,000 You collect 50% of sales
Cash inflows from sales Budgeted sales are:
Month | Sales revenue |
August | $10,000 |
September | $19,000 |
October | $12,000 |
November | $19,000 |
December | $14,000 |
You collect 50% of sales revenue as cash in the month of the sale, 30% in the following month, and 20% two months after the sale. a) Compute budgeted cash inflows for October and November: October = ____________$ November =___________ $ Remember to go backwards in time: e.g., 30% of September revenue is collected in the following month (October). This implies that cash inflows for October include 30% of sales from the previous month (September).
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