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Problem 18-5 Calculating Cash Collections (LO3] The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3
Problem 18-5 Calculating Cash Collections (LO3] The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $730 $760 $840 $920 a. Accounts receivable at the beginning of the year are $320. The company has a 45- day collection period. Calculate cash collections in each of the four quarters by completing the following (A negative answer should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.): Q1 Q2 03 Q4 $ 320.00 $ 365.00 $ 380.00 $ 420.00 Beginning receivables Sales 730.00 760.00 920.00 Cash collections -685.00 -745.00 840.00 -800.00 420.00 -880.00 Ending receivables $ 365.00 $ 380.00 $ $ 460.00 o. Recalculate the cash collections with a collection period of 60 days. (A negative answer should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.) Q1 Q2 Q3 Q4 $ 320.00 730.00 760.00 840.00 920.00 Beginning receivables Sales Cash collections Ending receivables c. Recalculate the cash collections with a collection period of 30 days. (A negative answer should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.) Q1 Q2 23 Q4 $ 320.00 Beginning receivables Sales 730.00 760.00 840.00 920.00 Cash collections Ending receivables
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