Question

The Geller Company has projected the following quarterly sales amounts for the coming year:

	Q1	Q2	Q3	Q4
Sales	$420	$480	$540	$690

a.	Accounts receivable at the beginning of the year are $270. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

   

b.	Accounts receivable at the beginning of the year are $270. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

   

c.	Accounts receivable at the beginning of the year are $270. The company has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

   

Answer 1

a]		Q1	Q2	Q3	Q4
	Sales	$             420	$                480	$               540	$              690
	Beginning receivables	$             270	$                210	$               240	$              300
	Total	$             690	$                690	$               780	$              990
	Collections	$             480	$                450	$               480	$              585
	Ending receivables	$             210	$                240	$               300	$              405
b]		Q1	Q2	Q3	Q4
	Sales	$             420	$                480	$               540	$              690
	Beginning receivables	$             270	$                140	$               120	$              180
	Total	$             690	$                620	$               660	$              870
	Collections	$             550	$                500	$               480	$              640
	Ending receivables	$             140	$                120	$               180	$              230
c]		Q1	Q2	Q3	Q4
	Sales	$             420	$                480	$               540	$              690
	Beginning receivables	$             270	$                280	$               320	$              360
	Total	$             690	$                760	$               860	$           1,050
	Collections	$             410	$                440	$               500	$              590
	Ending receivables	$             280	$                320	$               360	$              460