MDU,A Michigan-based general contractor,bills its clients on the first of the month.Clients traditionally pay as follows: 60% pay by the end of the first month,30% by the end of the second month,7% by the end of the third month,and 3% default on their bills.For example,a $1.00 sale made in the month of July is billed August 1st and $0.60 is paid in August,etc.The firm's CEO wants to know the anticipated cash flow for the second quarter.Use the following information to estimate second-quarter cash flows.

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The Answer of MDU,A Michigan-based general contractor,bills its clients on the first of the month.Clients traditionally pay as follows: 60% pay by the end of the first month,30% by the end of the second month,7% by the end of the third month,and 3% default on their bills.For example,a $1.00 sale made in the month of July is billed August 1st and $0.60 is paid in August,etc.The firm's CEO wants to know the anticipated cash flow for the second quarter.Use the following information to estimate second-quarter cash flows.

MDU,A Michigan-Based General Contractor,bills Its Clients on the First of the Month.Clients