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    Calculating Cash Collections for Oz-man Company

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    The Oz-man Company has projected the following quarterly sales amounts for the coming year:

    Sales Q1 $3600 Q2 $3300 Q3 $2400 Q4 $5600

    a. Accounts receivable at the beginning of the year are $1800. Oz-man has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following:

    Q1 Q2 Q3 Q4
    Beginning receivables
    Cash collections
    Ending receivables

    b. Rework (a) assuming a collection period of 60 days.

    c. Rework (a) assuming a collection period of 30 days.

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    Solution Summary

    The solution explains how to calculate cash collections given the collection period.