The Cryer Company has projected the following quarterly sales amounts for the co

Question

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

Accounts receivable at the beginning of the year are $2,800. 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. Round your answers to the nearest whole dollar amount (e.g., 32)):

Accounts receivable at the beginning of the year are $2,800. 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. Round your answers to the nearest whole dollar amount (e.g., 32)):

Accounts receivable at the beginning of the year are $2,800. 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. Round your answers to the nearest whole dollar amount (e.g., 32)):

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

Explanation / Answer

Ans. A Q1 Q2 Q3 Q4 Beginning inventory 2800 3050 3700 3450 Sales 6100 7400 6900 5700 Cash collections -5850 -6750 -7150 -6300 Ending receivables 3050 3700 3450 2850 *one quarter has 90 days (in a year). Ending receivables = 45 / 90 = 1/2 of sales Cash collection = ending receivables - (beginning inventory + sales) *The ending balance of one quarter is the beginning of next quarter. Ans.B Q1 Q2 Q3 Q4 Beginning inventory 2800 4067 4933 4600 Sales 6100 7400 6900 5700 Cash collections -4833 -6534 -7233 -6500 Ending receivables 4067 4933 4600 3800 Ending receivables = 60 / 90 = 2/3 of sales Cash collection = ending receivables - (beginning inventory + sales) Ans. C Q1 Q2 Q3 Q4 Beginning inventory 2800 2033 2467 2300 Sales 6100 7400 6900 5700 Cash collections -6867 -6966 -7067 -6100 Ending receivables 2033 2467 2300 1900 Ending receivables = 30 / 90 = 1/3 of sales Cash collection = ending receivables - (beginning inventory + sales)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.