Splitterfield Foods Forecasts the Following Sales and Expenses: June

question 20

Multiple Choice

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?

• A) $29.5 million.
• B) $32 million.
• C) $33 million.
• D) $20 million.

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Definitions:

Demyelinates

Demyelination refers to the process by which the myelin sheath, a protective covering of the nerve fibers in the brain and spinal cord, is damaged or destroyed, affecting the conduction of nerve impulses.

Somatic Motor Neurons

Neurons that transmit impulses from the central nervous system to skeletal muscles, facilitating voluntary muscle movements.

Schwann Cells

Specialized cells in the peripheral nervous system that wrap around nerve fibers, providing electrical insulation and helping in the regeneration of damaged nerves.

Oligodendrocytes

Glial cells in the central nervous system that produce myelin, the insulating layer around neurons.