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5. You collect 75% of a months sales in the month of the sale and 25% of sales in the following month. Compute cash inflows

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Answer #1

5)

The answer for the month of June is $ 270

Month Sales 75% 25% Cash inflow
May 240 180 60 180
June 280 210 70 270 (60+210)
July 200 150 50 270

6) As the question is based on cost approach, the answer should be A

The check on the design will actually determine the number of labour and production set up required. The design will also determine if the same is market friendly or not. The safety standard can be determined based on the design.

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