Calculating Cash Collections
The Litzenberger Company has projected the following quarterly sales amounts for the coming year:
Q1Q2Q3Q4 Sales$760 $790 $870 $950
a. Accounts receivable at the beginning of the year are $350. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following:
Q1 Q2 Q3 Q4 Beginning receivables$ $ $ $ Sales 760 790 870 950 Cash collections Ending receivables$ $ $ $
b. Recalculate the cash collections with a collection period of 60 days.