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    Cash Collections

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    The Company A has provided the following information:

    Forecasted sales for 1st quarter $200,000
    Forecasted sales for 2nd quarter 250,000
    Cash sales = 10% of total sales

    Collection schedule:
    In quarter sold 75%
    In next quarter 25%

    What are forecasted cash collections for the second quarter for Company A?

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    Solution Summary

    This explains the method to calculate the cash collections with the help of an example