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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