The MacFarlane Company has projected the following quarterly sales amounts for t

Question

The MacFarlane Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $7,800 $9,600 $9,000 $7,500 a. Accounts receivable at the beginning of the year are $3,600. 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 7,800 9,600 9,000 7,500 Cash collections Ending receivables $ $ $ $ b. Accounts receivable at the beginning of the year are $3,600. 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 7,800 9,600 9,000 7,500 Cash collections Ending receivables $ $ $ $ c. Accounts receivable at the beginning of the year are $3,600. 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 7,800 9,600 9,000 7,500 Cash collections Ending receivables $ $ $ $

Explanation / Answer

Cash collections:(45-day collection period) Q1 Q2 Q3 Q4 Total Beg.Receivables 3600 3900 4800 4500 3600 Add:Sales 7800 9600 9000 7500 33900 Less: Collections(Beg. Bal.+1/2* Current mth.Sales) 7500 8700 9300 8250 33750 Ending receivables 3900 4800 4500 3750 3750 Cash collections:(60-day collection period) Q1 Q2 Q3 Q4 Total Beg.Receivables 3600 2600 3200 3000 3600 Add:Sales 7800 9600 9000 7500 33900 Less: Collections(Beg.bal.+(2/3*current mth. Sales) 8800 9000 9200 8000 35000 Ending receivables 2600 3200 3000 2500 2500 Cash collections:(30-day collection period) Q1 Q2 Q3 Q4 Total Beg.Receivables 3600 5200 6400 6000 3600 Add:Sales 7800 9600 9000 7500 33900 Less: Collections(Beg.bal.+(1/3*current mth. Sales) 6200 8400 9400 8500 32500 Ending receivables 5200 6400 6000 5000 5000

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