problem 6

problem 7

Use the following information to complete Problem 6 and Problem 7 (Problem 7 is on the next page) A company expects that 90% of its sales will be on account and 10% will be in cash. It expects that 60% of its sales on account will be collected in the month of sale, 25% will be collected in the month following the month of sale, and 15% will be collected two months after the month of sale. It expects the following sales. Month January February March April May June July Expected sales $900,000 $850,000 $700,000 $650,000 $575,000 $500,000 $400,000 Problem 6 (8 points) What is the company's expected April cash inflow? Problem 7 (8 points) What is the company's expected accounts receivable balance on April 30