Cash Outflows 5. The purchase of inventory represents the largest cash outow. Inventory is typically purchased two months prior to expected sales and is paid in the month of purchase. Example, inventory for January sales would be purchased in November and paid for in November. Inventory for February sales would be purchased and paid for in December, etc. Cost of Goods Sold in 2007 were ?6% of sales, assume that 2008 cost of goods sold will also be 76% of sales