March: 400,000 April: 650,000 May: 520,000 a. Assume that Sequoia's collection period if 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? The cash collections in May would be $460,000. The accounts receivable would be $585,000. This is how I got that answer: March: April: May: Total: Sales 400,000 650,000 520,000 1,570,000 Cash Sales(50%) 200,000 325,000 260,000 785,000 Collection(60-day collection) 200,000 200,000 Total cash collection 200,000 325,000 460,000 985,000 Accounts Receivable 200,000 325,000 60,000 585,000 b. Now assume that Sequoia's collection period is 45 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May? The cash collections in May would be $585,000 and accounts receivable would be $260,000. March: April: May: Total: