As explained on the Help screen for the Cash Flow Statement, if a company genera

Question

As explained on the Help screen for the Cash Flow Statement, if a company generates revenues of $240 million in Year 11, revenues of $280 million in Year 12, and revenues of $300 million in Year 13, then its cash receipts from footwear sales will be

A. 25% of Year 12 revenues and 75% of Year 13 revenues for a total cash inflow of $295 million in Year 13.

B. one-third of Year 12 revenues and two-thirds of Year 13 revenues for a total cash inflow of $280 million in Year 14.

C. $200 million in Year 12, $240 million in Year 13, and $260 million in Year 14.

D. 50% of Year 12 revenues and 50% of Year 13 revenues for a total cash inflow of $290 million in Year 14.

E. $820 million in Year 14.

Explanation / Answer

B one-third of Year 12 revenues and two-thirds of Year 13 revenues for a total cash inflow of $280 million in Year 14.

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