Question 2: Cash inflows from sales Budgeted sales are: Month Sales revenue August $17,000 September $15,000 October $15,000 November $16,000 December $19,000 You collect 50% of sales revenue as cash in the month of the sale, 40% in the following month, and 10% two months after the sale. a) Compute budgeted cash inflows for October and November: October = $ November = $ Remember to go backwards in time: e.g., 40% of September revenue is collected in the following month (October). This implies that cash inflows for October include 40% of sales from the previous month (September). b) According to the income statement, a firm is profitable in the current year. Can the firm run out of cash during the year? O NO YES