Accounts Receivable Collection Forecast

Related BrainMass Solutions

• Pro-forma Financial using percentage of sales method

  The historical percentage of accounts receivable to sales would be 9.18% (multiply this by 365 and you can see the average collection period of 33.5 days or divide it into 1 and observe the accounts receivable turnover is 10.9 times per year).

• Corporate Finance

  Accounts receivable at the beginning of the year are $300. Litzenberger has a 45-day collection period.

• Kyoto clothing wholesaler: Prepare schedule of sales and col

  Accounts receivable at the beginning of 2008 are ¥96 million (10% of November credit sales of ¥180 million and 50% of December credit sales of ¥156 million).

• Calculating Cash Collection and Payments

  Accounts receivable at the beginning of the year are $275. Litzenberger has a 45-day collection period.

• Burnt Amber Corp: calculations in accounts receivable and cash collections

  receivable and then forecast monthly sales in order to determine cash collections for June.

• Reid Company

  All accounts receivable from months prior to January have been collected or written off.

• Forecast Accounts Receivable

  The forecast accounts receivable would be: since accounts receivable are directly proportional to sales, and sales is growing by 5% - accounts receivable will also increase by 5% forecast = (1+5%)*45000 = 47,250 The expert examines forecasts for account

• Cash Receipts & Cash Budget

  of Accounts Receivable 50% in next month and 50% in second month August Sales 6,600 September Sales 4,500 4,500 October Sales 7,500 7,500 Novermber Sales 9,000 Total cash collection 21,100

• Average accounts receivable balance

  Accounts receivable are equal to the average daily credit sales times the average collection period.