Required information Exercise 7-3 Predicting future cash flow (LO 7-2) Skip to question [The following information applies to the questions displayed below.] Shelter Products sells portable livestock shelters to hog producers in the Central and Midwest regions of the United States. The terms of sale require cash payment within 30 days, and most customers take full advantage of this payment option. Sales are somewhat seasonal, as indicated by the following table of monthly sales, accounts receivable, and cash receipts information. Accounts receivable figures are as of the month end, and December credit sales and cash collections are omitted for brevity. Dec Jan Feb Mar Apr May June Credit sales $ 38,000 $ 24,000 $ 45,000 $ 56,000 $ 63,000 $ 42,000 Accounts receivable $ 15,000 36,000 23,000 42,000 55,500 61,000 41,000 Cash collections 17,000 37,000 26,000 42,500 57,500 62,000 Requirement 2 2. Briefly explain why current period accrual earnings may be a better predictor of future operating cash flow than is current period operating cash flow.