A company has projected the following quarterly sales amounts for the coming year:
Sales Q1=$840 Q2=$780 Q3=$950 Q4=$870
A) Accounts receivable at the beginning of the year are $340. They have a 45 day collection period. Calculate the cash collections in each of the four quarters:
B) Rework A assuming a 60 day collection period
C) Rework A assuming a 30 day collection period
The solution explains how to calculate quarterly cash collections based on the sales data.