> Moving to the next question prevents changes to this answer. Question 11 Quest

Question

> Moving to the next question prevents changes to this answer. Question 11 Question 11 of MM Company's past experience indicates that 50% of its credit sales are collected in the month of sale 40% in the next month, and the balance in the 5 points second month ofthe sale Budgeted oedt sales were January February March The cash inflow in the month of March is expected to be O A. $406,800. $360,000 216,000 540,000 O B. $324,000. C $388,800. D. $392,400. Question 11 af Moving to the next question prevents changes to this answen

Explanation / Answer

Cash flow for March=(0.5*March sales)+(0.4*February)+(0.1*January)(Balance=100-50-40=10%)

=(0.5*540,000)+(0.4*216000)+(0.1*360,000)

which is equal to

=$392400.

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