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Shown below is the sales forecast for Kalin Inc. for the first four months of the coming year. Jan Feb Mar Apr Cash sales $

Shown below is the sales forecast for Kalin Inc. for the first four months of the coming year.

Jan Feb Mar Apr
Cash sales $ 33,000 $ 42,000 $ 36,000 $ 32,000
Credit sales $ 460,000 $ 480,000 $ 450,000 $ 430,000

On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: (CMA adapted)

Multiple Choice

  • $510,000.

  • $497,000.

  • $451,000.

  • $576,000.

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