Gillstrap Promotions has projected the following values for the next three months: JanuaryFebruaryMarchSales$352,000$379,000$444,328Purchases on Trade Credit$218,000$240,000$260,000Cash Expenses$88,000$91,000$94,000Taxes, interest, and dividends$18,000$20,000$41,000Capital Expenditures$50,0000$25,000All 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.

Net cash inflow is calculated by deducting cash outflows from cash inflow.

Answered: Gillstrap Promotions has projected the…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 19E: Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28....

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Gillstrap Promotions has projected the following values for the next three months:

	January	February	March
Sales	$352,000	$379,000	$444,328
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.

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