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Can some explain the process of this i got the right answers but i really would like a drawn put explanation Dr. X is opening
Can some explain the process of this i got the right answers but i really would like a drawn put explanation
Dr. X is opening a new dental clinic and attempting to estimate his anticipated cash collections. The top line of the schedule below lists the anticipated gross revenues. Dr. X has been informed to expect that 50% of revenues will be collected in the quarter that services are provided, 30% in the next quarter, 15% in the next quarter, and the remainder will likely never be collected. Use the pick lists associated with each boxed area below to select the correct cash flow associated with the cell. When all cells within a quarterly column are correctly selected, the total cash collections amount for that quarter will turn green. First Quarter Second Quarter Third Quarter 325,000 Fourth Quarter Total estimated revenues 250,000 $ 275,000 $ $ 400,000 50% of current month 125,000 137,500 162,500 200,000 37,500 30% of prior month 15% of two months prior 37,500 97,500 37,500 82,500 41,250 Cash collections 125,000 $ 212,500 $ 282,500 $ 338,750 Step by Step Solution
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