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

a) Cash collections=Beginning receivables+(90-45)/90 or 1/2 of current quarter sale Q1 Q2 Q3 Q4 Beginning receivables (a) 2800 3050 3700 3450 Sales (b) 6,100 7,400 6,900 5,700 Cash collections (c) Beginning receivables 2800 3050 3700 3450 Current quarter sale (1/2) 3050 3700 3450 2850 5850 6750 7150 6300 Ending receivables (a)+(b)-© 3,050 3,700 3,450 2,850 b) Cash collections=Beginning receivables+(90-60)/90 or 1/3 of current quarter sale Q1 Q2 Q3 Q4 Beginning receivables (a) 2800 4067 4933 4600 Sales (b) 6,100 7,400 6,900 5,700 Cash collections (c) Beginning receivables 2800 4067 4933 4600 Current quarter sale (1/3) 2033 2467 2300 1900 4833 6534 7233 6500 Ending receivables (a)+(b)-© 4,067 4,933 4,600 3,800 c) Cash collections=Beginning receivables+(90-30)/90 or 2/3 of current quarter sale Q1 Q2 Q3 Q4 Beginning receivables (a) 2800 2033 2467 2300 Sales (b) 6,100 7,400 6,900 5,700 Cash collections (c) Beginning receivables 2800 2033 2467 2300 Current quarter sale (1/3) 4067 4933 4600 3800 6867 6966 7067 6100 Ending receivables (a)+(b)-© 2,033 2,467 2,300 1,900

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