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Avril Company makes collections on sales according to the below schedule. The Treasury Manager conducts an analysis of the cash collection and determines that cash
Avril Company makes collections on sales according to the below schedule. The Treasury Manager conducts an analysis of the cash collection and determines that cash collection target for March should be $110,000. Evaluate whether the collection target for March is correct and summarize your recommendations. (2 Marks each * 5 = 10 marks) Month Expected Sales January $ 100,000 February $ 120,000 March $ 110,000 70% in the month of sale 20% in the month following sale 10% in the second month following sale 70% in the month of sale 20% in the month following sale 10% in the second month following sale The collection amount for January is . $ 40,000 Ob $ 70,000 . $ 30.000
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