Question
C13 Q4 need help with all three parts Cash flow of accounts receivable.Myers and Associates, a famous law firm in California, bills its clients on
C13 Q4 need help with all three parts
Cash flow of accounts receivable.Myers and Associates, a famous law firm in California, bills its clients on the first of each month. Clients pay in the following fashion: 40% pay at the end of the first month, 30% pay at the end of the second month, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2015 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows:Click on the icon in order to copy its content into a spreadsheet
Fourth Quarter Actual Billings | First Quarter Anticipated Billings | ||||
Oct. | Nov. | Dec. | Jan. | Feb. | Mar. |
$562,000 | $446,000 | $395,000 | $475,000 | $525,000 | $588,000 |
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Part 1 What is the anticipated cash flow for January of 2015 if past billings and anticipated billings follow this same pattern?
$enter your response here
(Round to the nearest dollar.)
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