Regular production costs $25 per unit and selling a unit represents a cash inflow of $30 per unit. Assume that all units reflected on the forecast will be sold. What is the cumulative net cash flow at the end of April?
Month Forecast Regular Production
January 250 250
February 200 200
March 300 300
April 400 400
What will be an ideal response?
Answer: The cumulative net cash flow at the end of April is $5750. The table shows the month-by-month accumulation.
Month Forecast Regular Production Cash Inflows Cash Outflows Cumulative
January 250 250 7500 6250 1250
February 200 200 6000 5000 2250
March 300 300 9000 7500 3750
April 400 400 12,000 10,000 5750
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