Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Marc's Ferrari Driving Company (MFDC) now sells tickets to their driving' events. 70% of the ticket sales are paid for with cash immediately, while the
Marc's Ferrari Driving Company (MFDC) now sells tickets to their driving' events. 70% of the ticket sales are paid for with cash immediately, while the remaining sales occurring on credit. 80% of the credit sales are collected the following month with the remainder collected two months after the original sale (our collections team is... persuasive) Supplies are ordered the month prior to use and the gross margin for this form is 87%. 24% of those supply orders are paid for immediately, with the rest paid the following month. Some of the historical and projected) financial data for MFDC is supplied in the table below. Use this information to answer this question, and the following three questions. (note, the parts of the table shaded in green may be of particular interest to you) Nov. Dec Jan. Feb. Mar $20,000 $27,000 $30,000 $38,000 $40,000 Month Expected Sales Cash sales this month Credit sales this month Cash Collected From: Cash sales this month Credit sales from last month Credit sales from two months ago Total Cash Inflow Purchases this month Purchases for next month Total Cash Outflow Net Cash Flow What is the forecasted total cash inflow for January? (answer in dollars, rounded to the nearest penny, for example, if your answer is $123.456 you should enter 123.46) Question 23 2 pts What is the forecasted total cash outflow for January? (answer in dollars, rounded to the nearest penny, for example, if your answer is $123.456 you should enter 123.46)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started