21 Calculating Cash Collections Assume that Next plc has projected the following quarterly sales amounts for the

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21 Calculating Cash Collections Assume that Next plc has projected the following quarterly sales amounts for the coming year:

Q1 Q2 Q3 Q4 Sales £824m £920m £620m £1,600m

(a) Trade receivables at the beginning of the year are £145 million. Next plc has a 10-day collection period. Calculate cash collections in each of the four quarters by completing the following:

Q1 Q2 Q3 Q4 Beginning receivables Sales Cash collections Ending receivables

(b) Rework

(a) assuming a collection period of 20 days.

(c) Rework

(a) assuming a collection period of 30 days.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 19, 2024 05:04 PM

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21 Calculating Cash Collections Assume that Next plc has projected the following quarterly sales amounts for the

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Corporate Finance

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