Question

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

	Q1	Q2	Q3	Q4
Sales	$450	$510	$570	$720

  
a. Accounts receivable at the beginning of the year are $240. 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.)
   

	Q1	Q2	Q3	Q4
Beginning receivables	$	$	$	$
Sales	450	510	570	720
Cash collections
Ending receivables	$	$	$	$

   
b. Accounts receivable at the beginning of the year are $240. 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.)
    

	Q1	Q2	Q3	Q4
Beginning receivables	$	$	$	$
Sales	450	510	570	720
Cash collections
Ending receivables	$	$	$	$

  
c. Accounts receivable at the beginning of the year are $240. 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.)
  

	Q1	Q2	Q3	Q4
Beginning receivables	$	$	$	$
Sales	450	510	570	720
Cash collections
Ending receivables	$	$	$	$

Answer 1

Ans:

(a)

	Q1	Q2	Q3	Q4
Sales (A)	450	510	570	720
Days (B)	90	90	90	90
Sale per day (A/B) = C	5	5.666667	6.333333	8
Sales for 45 days C*45	225	255	285	360
Ending receivable (45days sale)	225	255	285	360
Beginning receivable	240	225	255	285
Cash collection (beginning ar+45days	465	480	540	645
	240+225	225+255	255+285	285+360

(b)

	Q1	Q2	Q3	Q4
Sales (A)	450	510	570	720
Days (B)	90	90	90	90
Sale per day (A/B) = C	5	5.666667	6.333333	8
Sales for 60 days C*60 = D	300	340	380	480
Sales for 30 days C*30 =E	150	170	190	240
Ending receivable (60days sale) D	300	340	380	480
Beginning receivable	240	300	340	380
Cash collection (beginning ar+30days sales	390	470	530	620
	240+150	300+170	340+190	380+240

(c)

	Q1	Q2	Q3	Q4
Sales (A)	450	510	570	720
Days (B)	90	90	90	90
Sale per day (A/B) = C	5	5.666667	6.333333	8
Sales for 60 days C*60 = D	300	340	380	480
Sales for 30 days C*30 =E	150	170	190	240
Ending receivable (30days sale) E	150	170	190	240
Beginning receivable	240	150	170	190
Cash collection (beginning ar+60days sales	540	490	550	670
	240+300	150+340	170+380	190+480