plitterfield Foods forecasts the following sales and expenses:       June July August Sales ($ millions) 120 150 160 Purchases of raw materials ($ millions) 70 80 85 Other expenses ($ millions) 30 38 40     Seventy percent of sales are paid for in the same month and the remainder with a delay of one month. All raw materials are paid for with a delay of one month, other expenses are paid with no delay. What is the expected cash flow from operations in July?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Splitterfield Foods forecasts the following sales and expenses:

 

 

 

June

July

August

Sales ($ millions)

120

150

160

Purchases of raw materials ($ millions)

70

80

85

Other expenses ($ millions)

30

38

40

 

 

Seventy percent of sales are paid for in the same month and the remainder with a delay of one month. All raw materials are paid for with a delay of one month, other expenses are paid with no delay. What is the expected cash flow from operations in July?


 

Select one:
a. $32 million
b. $20 million
c. $29.5 million
d. $33 million
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