The Bass Company has projected the following quarterly sales amounts for the com
ID: 450000 • 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 $360. 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 $360. 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 dollar amount (e.g., 32)): Accounts receivable at the beginning of the year are $360. 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 dollar amount (e.g., 32)):Explanation / Answer
a. 45- day collection period implies all receivables outstanding from previous quarter are collected in the current quarter and (90-45)/90 =1/2 of current sales are collected.
b. 60- day collection period implies all receivables outstanding from previous quarter are collected in the current quarter and (90-60)/90 =1/3 of current sales are collected.
a. 45- day collection period implies all receivables outstanding from previous quarter are collected in the current quarter and (90-30)/90 =2/3 of current sales are collected.
Q1 Q2 Q3 Q4 Begininng receivables 360 +/- 0.01 300 +/- 0.01 315 +/- 0.01 345 +/- 0.01 Sales Cash Collections 660 +/- 0.01 615 +/- 0.01 660 +/- 0.01 765 +/- 0.01 Ending Receivables 300 +/- 0.01 315 +/- 0.01 345 +/- 0.01 420 +/- 0.01 Q1 Q2 Q3 Q4 Begininng receivables 360 +/- 0.01 400 +/- 0.01 420 +/- 0.01 460 +/- 0.01 Sales Cash Collections 760 +/- 0.01 820 +/- 0.01 880 +/- 0.01 1020 +/- 0.01 Ending Receivables 400 +/- 0.01 420 +/- 0.01 460 +/- 0.01 560 +/- 0.01 Q1 Q2 Q3 Q4 Begininng receivables 360 +/- 0.01 200 +/- 0.01 210 +/- 0.01 230 +/- 0.01 Sales Cash Collections 560 +/- 0.01 410 +/- 0.01 440 +/- 0.01 510 +/- 0.01 Ending Receivables 200 +/- 0.01 210 +/- 0.01 230 +/- 0.01 280 +/- 0.01Related Questions
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