The sales budget for your company in the coming year is based on a 20 percent quarterly growth rate with the first-quarter sales projection at $100 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, -$10, -$5, and $15 million, respectively.
Generally, 50 percent of the sales can be collected within the quarter and 45 percent in the following quarter; the rest of sales are bad debt. The bad debts are written off in the second quarter after the sales are made. The beginning accounts payable balance is $81 million.
Assuming all sales are on credit, compute the cash collections from sales for each quarter.© BrainMass Inc. brainmass.com June 3, 2020, 10:39 pm ad1c9bdddf
Assuming all sales are on credit, compute the cash collections from sales for each quarter.
This solution is comprised of a detailed explanation to compute the cash collections from sales for each quarter. Please note that this has not been completed using Excel, but the computations are clearly shown.