1. Pet Delight specializes in gourmet pet treats. Sales estimates in millions for the next two quarters are $500 for 1Q and $600 for 2Q. All sales are made on credit. The companys beginning accounts receivable balance is $250. The companys Days in Receivables is 30 days. Cash collections from Accounts Receivables in 1Q would be estimated to be:

$417

$250

$750

$583

$167

Continuing from above, Pet Delight has a Payables period of 45 days. Purchases are expected to be 50% of next quarters sales. The companys beginning Accounts Payable balance is $125. Using sales data from problem 10, disbursements during 1Q would be estimated to be:

$275

$425

$725

$325

$583