Reference no: EM132941145

Question - The following data have been taken from the budget reports of Brandon company, a merchandising company.

Purchases Sales

Jan $160,000 $100,000

Feb $160,000 $200,000

Mar $160,000 $240,000

Apr $140,000 $300,000

May $140,000 $260,000

Jun $120,000 $240,000

Forty percent of purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the next two months.

Purchases for the previous November and December were $150,000 per month. Employee wages are 10% of sales for the month in which the sales occur.

Selling and administrative expenses are 20% of the following month's sales. (July sales are budgeted to be $220,000.)

Interest payments of $20,000 are paid quarterly in January and April.

Required - What is the expected net cash flow from operations (receipts minus disbursements) for the month of March?