In: Finance
Based on the data below, with a collection period of 60 days what are cash collections in Q2? (format $xxx as needed, no cents)
Beginning A/R $335
a. Collection Period 45
b. Collection Period 60
c. Collection Period 30
Sales:
Q1 $545
Q2 $598
Q3 $575
Q4 $795
A | Collection period = 45 days: | ||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||
Beginning receivables | 335 | 273 | 299 | 288 | |||||||
Sales | 545 | 598 | 575 | 795 | |||||||
Cash collections | 608 | 572 | 587 | 686 | |||||||
Ending receivables | 273 | 299 | 288 | 398 | |||||||
*Ending receivables = Sales * 45 / 90 | |||||||||||
B | Collection period = 60 days: | ||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||
Beginning receivables | 335 | 363 | 399 | 383 | |||||||
Sales | 545 | 598 | 575 | 795 | |||||||
Cash collections | 517 | 562 | 591 | 648 | |||||||
Ending receivables | 363 | 399 | 383 | 530 | |||||||
*Ending receivables = Sales * 60 / 90 | |||||||||||
C | Collection period = 30 days: | ||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||
Beginning receivables | 335 | 182 | 199 | 192 | |||||||
Sales | 545 | 598 | 575 | 795 | |||||||
Cash collections | 698 | 581 | 582 | 722 | |||||||
Ending receivables | 182 | 199 | 192 | 265 | |||||||
*Ending receivables = Sales * 30 / 90 | |||||||||||
*Cash Collections = Beginning receivables + sales - Ending receivables | |||||||||||