Assuming quarter sales occur evenly through out the month | ||||||
A) when collections period is 45 days | ||||||
Particulars | Q1 | Q2 | Q3 | Q4 | ||
Beginning receivables | 290 | 335 | 350 | 390 | ||
Sales | 670 | 700 | 780 | 850 | ||
Cash collections | 625 | 685 | 740 | 815 | ||
Ending receivables | 335 | 350 | 390 | 425 | ||
Note 1 | cash collections = beginning receivables +{ (current quarter sales*45days)/90days} | |||||
Note 2 | when collection period is 45 days which means assuming quarter is 90 days, 1st 45 days sales will be collected in next 45 days and beginning receivables is collected in the current quarter | |||||
B) when collections period is 60 days | ||||||
Particulars | Q1 | Q2 | Q3 | Q4 | ||
Beginning receivables | 290.00 | 446.67 | 466.67 | 520.00 | ||
sales | 670.00 | 700.00 | 780.00 | 850.00 | ||
cash collections | 513.33 | 680.00 | 726.67 | 803.33 | ||
ending receivables | 446.67 | 466.67 | 520.00 | 566.67 | ||
Note 1 | cash collections = beginning receivables +{ (current quarter sales*30days)/90days} | |||||
Note 2 | when collection period is 60 days which means 1st month sales will be collected in 3rd month, 2nd month sales will be collected in 4th month and so on, | |||||
C) when collections period is 30 days | ||||||
Particulars | Q1 | Q2 | Q3 | Q4 | ||
Beginning receivables | 290.00 | 223.33 | 233.33 | 260.00 | ||
sales | 670.00 | 700.00 | 780.00 | 850.00 | ||
cash collections | 736.67 | 690.00 | 753.33 | 826.67 | ||
ending receivables | 223.33 | 233.33 | 260.00 | 283.33 | ||
Note 1 | cash collections = beginning receivables +{ (current quarter sales*60days)/90days} | |||||
Note 2 | when collection period is 30 days which means 1st month sales will be collected in 2nd month, 2nd month sales will be collected in 3rd month and so on. So a 2/3 portion of current quarter sales will be collected in the current quarter itself | |||||
The Gruber Company has projected the following quarterly sales amounts for the coming year. Q1 Sales...
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Sales 01 $800 02 $830 03 $910 04 $990 a. Accounts receivable at the beginning of the year are $390. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: 01 02 03 04 Sales $830 $860 $940 $970 a. Accounts receivable at the beginning of the year are $420. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (A negative answer should be Indicated by a minus sign. Round your answers to 2 decimal places, e.g. 32.16.) Q2 Q3 Q4 $ T...
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $ 690 $ 720 $ 800 $ 870 a. Accounts receivable at the beginning of the year are $270. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by...
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $ 790 $ 820 $ 900 $ 980 a. Accounts receivable at the beginning of the year are $380. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by...
The Bass Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $540 $630 $590 $840 Required: (a) Accounts receivable at the beginning of the year are $295. Bass has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Do not round intermediate calculations. Round your answers to the nearest dollar amount (e.g., 32)): Q1 Q2 Q3 Q4 Beginning receivables $ $ $ $ Sales...
The Doak Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $7,950 $9,750 $9,150 $7,650 a. Accounts receivable at the beginning of the year are $3,750. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. Accounts receivable at the beginning of the year...
King Fisher Aviation has projected the following quarterly sales amounts for the coming year: Quarter 1 $750 Quarter 2 $820 Quarter 3 $790 Quarter 4 $950 Accounts Receivable at the beginning of the year are $350. King Fisher has a 30-day collection period. Calculate the cash collections in each of the four quarters by completing the following for each quarter Beginning receivables Sales Cash Collections Ending Receivables Rework the Ending Receivables calculation using 45 and 60 days What do you...
The Geller Company has projected the following quarterly sales amounts for the coming year: Q1Q2Q3Q4 Sales$630$660$720$870 a.Accounts receivable at the beginning of the year are $390. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b.Accounts receivable at the beginning of the year are $390. The company has a 60-day collection period. Calculate cash collections in each of...
The Geller Company has projected the following quarterly sales amounts for the coming year: Q1Q2Q3Q4 Sales$630$660$720$870 a.Accounts receivable at the beginning of the year are $390. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)b.Accounts receivable at the beginning of the year are $390. The company has a 60-day collection period. Calculate cash collections in each of...
Piano Man, Inc., has a 40-day average collection period and wants to maintain a minimum cash balance of $30 million, which is what the company currently has on hand. The company currently has a receivables balance of $194 million and has developed the following sales and cash disbursement budgets in millions: Q1 02 3 Q4 $423 S495 $576 $540 322 440 686 445 Sales Total cash disbursement Complete the following cash budget for the company. (A negative answer should be...