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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
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$510,000.
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$497,000.
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$451,000.
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$576,000.
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