Splitterfield Foods forecasts the following sales and expenses:

June July August

Sales ($ millions) 120 150 160

Purchases of raw materials ($ millions) 70 80 85

Other expenses ($ millions) 30 38 40

Seventy percent of sales are paid for in the same month and the remainder with a delay of one month. All raw materials are paid for with a delay of one month, other expenses are paid with no delay. What is the expected cash flow from operations in July?

Multiple Choice

• $29.5 million.
• $32 million.
• $33 million.
• $20 million.