0B 1 Week Two - Problem 14 2 Example 1 3 SnowSki Industries, a local PNW company services ski resorts who rent skis out to tourists and local skiers. 4 The collection period is 30 days 5 Sales over the past 2 months, of which half are in cash are as follows: 6 7 January February 8 Sales $500,000 $750,000 9 10 11 To start this problem, if the collection period is in 30 days, when will the 12 January sales be collected in cash? select 13 14 When will the February sales be collected in cash? select 15 16 It looks like this... 17 18 19 January February March 20 $500,000 $750,000 21 $250,000 375000 22 The total cash collections for 23 1/2 collected cash February are: 250,000 (from $250,000 $375,000 January) + 375,000 (from 24 February) = 625,000 25 1/2 waiting in accounts $250,000 375,000 26 receivable 27 28 29 30 31