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 $3,870. 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 $3,870. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following (Round your answers to the nearest whole dollar amount (e.g., 32)):

Accounts receivable at the beginning of the year are $3,870. The company has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following (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 For 45 days collection, 50% collection will collected in qtr remaining 50% nest qtr Q1 Q2 Q3 Q4   Beginning receivables          3,870 $    $    $      Sales          8,070          9,870          9,270          7,770   Cash collections                     Opening AR          3,387   Cash collections Q1          4,035          4,035   Cash collections Q2          4,935          4,935   Cash collections Q3          4,635          4,635   Cash collections Q4          3,885 Total cash Collection          7,422          8,970          9,570          8,520   Ending receivables          4,035          4,935          4,635          3,885 b For 60 day s collection 1/3 rd will be collected in same qtr Q1 Q2 Q3 Q4   Beginning receivables          3,870 $    $    $      Sales          8,070          9,870          9,270          7,770   Cash collections                     Opening AR          3,387   Cash collections Q1          2,690          5,380   Cash collections Q2          3,290          6,580   Cash collections Q3          3,090          6,180   Cash collections Q4          2,590 Total cash Collection          6,077          8,670          9,670          8,770   Ending receivables          5,380          6,580          6,180          5,180 c For 30 day s collection 2/3 rd will be collected in same qtr Q1 Q2 Q3 Q4   Beginning receivables          3,870 $    $    $      Sales          8,070          9,870          9,270          7,770   Cash collections                     Opening AR          3,387   Cash collections Q1          5,380          2,690   Cash collections Q2          6,580          3,290   Cash collections Q3          6,180          3,090   Cash collections Q4          5,180 Total cash Collection          8,767          9,270          9,470          8,270   Ending receivables          2,690          3,290          3,090          2,590

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