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cash collections for 4th quarter. Pet Treats, Inc, specialires in goummet pet treats and recelves all income from sales and has the following account details:
cash collections for 4th quarter. Pet Treats, Inc, specialires in goummet pet treats and recelves all income from sales and has the following account details: Last year's ending payables and receivables were $125M and $250M, resp \$ctively, while the cash balance was $80M. Historically, the average receivables tumover ratio has been 6.0833, while the average payables period has been 45 days. Recently, purchases have been approximately one half of sales but are purchased a quarter in advance. The firm likes to maintain a minimum balance of $50M. Other relevant expenses include the following: Wages, taxes, and other expense are 30% of sales, Interest and dividend payments are $50M, and a major capital expenditure of $200M is expected in the second quarter. The following sales estimates are projected: Sales estimates (in millions): Q1=500;Q2=600;Q3=650;Q4=800; Q1 next year =550 What are the cash collections for quarter four? Round to the nearest million dollars. Assume 90 day quarters
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