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?
Multiple Choice
- $29.5 million.
- $32 million.
- $33 million.
- $20 million.