vs 40000 in period i to produce some goods It sells 50 of th

vs $40,000 in period i to produce some goods. It sells 50% of the goods in riod 1) and remaining 50% in the second period. The fi 2. A firm pa the same period (pe collect payments right away. It collects $30,000 payments from its customers in period 2 and $30,000 in period 3. Calculate the cash flows to the firm in each period by completing the following table: rm doesn\'t Period 1 Period 2 Period 3 Sales Change in AR COGS Change in Inv. Net CF

Solution

Period 1 Period 2 Period 3 Sales 30,000 30,000 0 Change in AR 30,000 30,000 0 COGS 20,000 20,000 0 Change in inventory 20,000 0 0 Net CF -40,000 30,000 30,000