Question
Gillstrap Promotions has projected the following values for the next three months: January February March Sales $352,000 $379,000 $437,850 Purchases on Trade Credit $218,000 $240,000
Gillstrap Promotions has projected the following values for the next three months:
| January | February | March | |
| Sales | $352,000 | $379,000 | $437,850 |
| Purchases on Trade Credit | $218,000 | $240,000 | $260,000 |
| Cash Expenses | $88,000 | $91,000 | $94,000 |
| Taxes, interest, and dividends | $18,000 | $20,000 | $41,000 |
| Capital Expenditures | $50,000 | 0 | $25,000 |
All sales are credit sales with 40% collected in the month of sale, 50% collected the following month, and the remainder collected in the second month after the sale. Credit purchases are paid in 30 days and all other items require immediate payment. Compute the net cash inflow for March.
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Managerial Accounting A Focus on Ethical Decision Making
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
5th edition
978-0324663853
