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    Quarterly Cash Collections

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    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:

    Beginning Receivables
    Cash Collections
    Ending Receivables

    B) Rework A assuming a 60 day collection period
    C) Rework A assuming a 30 day collection period

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    Solution Summary

    The solution explains how to calculate quarterly cash collections based on the sales data.