Question

January February March Sales $352,000 $379,000 $443,520 Purchases on Trade Credit $218,000 $240,000 $260,000 Cash Expenses $88,000 $91,000 $94,000 Taxes, interest, and dividends $18,000 $20,000 $41,000 Capital Expenditures $50,000 0 $25,000 All sales are credit sales with 40% collected in the month of sale, 50% collected the following month, and the remainder collected in the second month after the sale. Credit purchases are paid in 30 days and all other items require immediate payment. Compute the net cash inflow for March.

Answer 1

Thus, the net cash inflow for the month of March is $2,108.

Data and Calculations:

                                                      January       February           March

Sales                                           $352,000      $379,000       $443,520

Cash collections:

40% month of sales                      140,800         151,600           177,408

50% a month after                                              176,000          189,500

10% two months after                                                                  35,200

Total collections                                                                      $402,108

Credit Purchases                        $218,000     $240,000       $260,000

Cash payment for purchases                          $218,000       $240,000

Cash Expenses                            $88,000        $91,000         $94,000

Taxes, interest, and dividends    $18,000       $20,000          $41,000

Capital Expenditures                  $50,000                   0          $25,000

Total cash disbursements       $156,000     $329,000       $400,000

Net cash inflow for March                                                         $2,108

Thus, the net cash inflow for the month of March is $2,108 ($402,108 - $400,000).

Learn more: brainly.com/question/20484362