Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows:

image text in transcribed

What is the forecast for Paymores cash receipts in each quarter of the coming year? On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $356. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

image text in transcribed

Following Year First Quarter $404 Quarter in Coming Year First Sales forecast $500 SecondThird Fourth $404 $343 $356 Quarter Collections 2 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enhancing Financial Inclusion Through Islamic Finance Volume II

Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Mohamed Hassan Azrag

1st Edition

3030399389,3030399397

More Books

Students also viewed these Finance questions