Based on the data below, with a collection period of 60 days what are cash collections...

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

Solutions

Expert Solution

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

jeff jeffy answered 1 year ago

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