Question
Sequoia Furniture Companys sales over the past three months, half of which are for cash, were as follows: March April May $420,000 $670,000 $540,000 a.
Sequoia Furniture Companys sales over the past three months, half of which are for cash, were as follows:
| March | April | May |
| $420,000 | $670,000 | $540,000 |
a. Assume that Sequoias collection period is 60 days. What would be its cash receipts in May? What would be its accounts receivable balance at the end of May?
b. Now assume that Sequoias 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?
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Valuation Measuring And Managing The Value Of Companies
Authors: McKinsey & Company Inc., Tom Copeland, Tim Koller, Jack Murrin
3rd Edition
0471361909, 978-0471361909
