Windy City Kite Company has prepared sales forecasts for the beginning

Windy City Kite Company has prepared sales forecasts for the beginning of Year 3 as shown in the top row of the table. Half of Windy City’s kite sales are cash and the other half are credit.

Windy City collects credit sales the month following the credit sale. What are Windy City’s total cash inflows from customers for January?

Windy City Kite Company
Sales Forecast and Collections Forecast
December January February
Sales Forecast $1,100 $1,000 $2,000
Cash Collections
Collections from Sales last month
Total Cash Inflows

A) $500
B) $550
C) $1,000
D) $1,050

ANSWER

D