Question

The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:

	Q1			Q2			Q3			Q4
Sales	$	780		$	810		$	890		$	970

a.	Accounts receivable at the beginning of the year are $370. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.):

	Q1		Q2		Q3		Q4
Beginning receivables	$		$		$		$
Sales	780.00		810.00		890.00		970.00
Cash collections
Ending receivables	$		$		$		$

b.	Recalculate the cash collections with a collection period of 60 days. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.)

	Q1		Q2		Q3		Q4
Beginning receivables	$		$		$		$
Sales	780.00		810.00		890.00		970.00
Cash collections
Ending receivables	$		$		$		$

c.	Recalculate the cash collections with a collection period of 30 days. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.)

	Q1		Q2		Q3		Q4
Beginning receivables	$		$		$		$
Sales	780.00		810.00		890.00		970.00
Cash collections
Ending receivables	$		$		$		$

Please help with all parts
   

Answer 1

Assuming the 90 days in Each Quarter.
Each Collection period percentage Cash collection of Sales Calculation:
A . Cash collection of Current Sales = (90 Days - Collection period) / 90 Days
Cash Collection of Current Sales = (90-45)/90 = 50%
B.  Cash Collection of Current Sales = (90-60)/90 = 33.33333%
C. Cash Collection of Current Sales = (90-30)/90 = 66.66667%

		Q1	Q2	Q3	Q4
a	Beginning Receivables	370	390	405	445
b	Sales	780	810	890	970
c	Cash Collections = (50% on sale + Beginning Receivable)	760	795	850	930
d	Ending Receivables (a+b-c) (Beginning Receivables + Sales - Cash Collections)	390	405	445	485
		Q1	Q2	Q3	Q4
a	Beginning Receivables	370	520	540	593.33
b	Sales	780	810	890	970
c	Cash Collections = (33.3333% on sale + Beginning Receivable)	630	790	836.67	916.67
d	Ending Receivables (a+b-c) (Beginning Receivables + Sales - Cash Collections)	520	540	593.33	646.67
C
								Q1	Q2	Q3	Q4
						a	Beginning Receivables	370.00	260.00	270.00	296.67
						b	Sales	780.00	810.00	890.00	970.00
c	Cash Collections = (66.6667% on sale + Beginning Receivable)	890.00	800.00	863.33	943.33
d	Ending Receivables (a+b-c) (Beginning Receivables + Sales - Cash Collections)	260.00	270.00	296.67	323.33