The Bass Company has projected the following quarterly sales amounts for the com
ID: 2763948 • Letter: T
Question
The Bass Company has projected the following quarterly sales amounts for the coming year:
Accounts receivable at the beginning of the year are $420. Bass 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 dollar amount (e.g., 32)):
Accounts receivable at the beginning of the year are $420. Bass 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 dollaramount (e.g., 32)):
(Exact same table as a)
Accounts receivable at the beginning of the year are $420. Bass 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 dollaramount (e.g., 32)):
(Exact same table as a)
Sales Q1: $270 Q2: $330 Q3: $390 Q4: $540Explanation / Answer
Answer
Answer (a)
Figures in $
Particulars
Quarter 1
Quarter 2
Quarter 3
Quarter 4
beginning Receivables
a
420
135
165
195
Sales
b
270
330
390
540
Cash collections
c
555
300
360
465
420+(270/2)
135+(330/2)
165+(390/2)
195+(540/2)
Ending receivables (a+b-c)
135
165
195
270
Answer (b)
Figures in $
Particulars
Quarter 1
Quarter 2
Quarter 3
Quarter 4
beginning Receivables
a
420
180
220
260
Sales
b
270
330
390
540
Cash collections
c
510
290
350
440
420+(270/3)
180+(330/3)
220+(390/3)
260+(540/3)
Ending receivables (a+b-c)
180
220
260
360
Answer (c )
Figures in $
Particulars
Quarter 1
Quarter 2
Quarter 3
Quarter 4
beginning Receivables
a
420
90
110
130
Sales
b
270
330
390
540
Cash collections
c
600
310
370
490
420+(270*2/3)
90+(330*2/3)
110+(390*2/3)
130+(540*2/3)
Ending receivables (a+b-c)
90
110
130
180
Figures in $
Particulars
Quarter 1
Quarter 2
Quarter 3
Quarter 4
beginning Receivables
a
420
135
165
195
Sales
b
270
330
390
540
Cash collections
c
555
300
360
465
420+(270/2)
135+(330/2)
165+(390/2)
195+(540/2)
Ending receivables (a+b-c)
135
165
195
270
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