Expected cash inflow from operations

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Reference no: EM13202094

Here is a forecast of sales by National Bromide for the first four months of 2010 (figures in $ thousands):

                                              Month 1       Month 2        Month 3       Month 4

Cash Sales                                15                24                18                14

Sales on Credit                         100              120                90                70

On the average 50% of credit sales are paid for in the current month, 30% are paid in the next month, and the remainders are paid in the month after that. What is the expected cash inflow from operations in months 3 and 4?

Abbreviated financial statements for Archimedes Levers are shown in Table 19.12. If sales increase by 10% in 2011 and all other items, including debt, increase correspondingly, what must be the balancing item? What will be its value?

TABLE 2

Income Statement

Sales                                                  $4000

Costs, including interest                     $3,500

Net income                                          $500

Balance Sheet, Year-End

2010            2009                             2010           2009

Assets                   $3,200         $2,700         Debt            $1,200         $1,033

                                                         Equity                   $2,000         $1,677

Total           $3,200         $2,700         Total           $3,200         $2,700

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Reference no: EM13202094

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