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The treasurer of Simmons Corporation, a newly formed software company is trying to ascertain Simmons cash flows for the next three months. Expected sales are
The treasurer of Simmons Corporation, a newly formed software company is trying to ascertain Simmons cash flows for the next three months. Expected sales are January February March Expected Sales $200 $220 $300 50% of sales are made for cash. Simmons expects to receive 25% in the month following the sale and 20% In the second month following the sale. The remaining 5% are expected to be un collectible. Gross margin is 30%, and purchases are made one month prior to sale. Purchases are paid one month after received. The cash inflows in March from sales and outflows from purchases are $ and $ respectively
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