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The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 $ 840 $810 03 $920 Q4 $980 Sales a.
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 $ 840 $810 03 $920 Q4 $980 Sales a. Accounts receivable at the beginning of the year are $400. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) 02 QI 400 03 420 04 460 S $ 405 $ $ Beginning receivables Sales Cash collections 980 810 805 840 825 920 880 950 Ending receivables S 405 $ 420 $ 460 $ 490 b. Recalculate the cash collections with a collection period of 60 days. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) 02 01 400 03 560 04 613.33 $ $ 540 $ $ Beginning receivables Sales 810 670 840 820 920 866.67 980 940 x Cash collections Ending receivables $ 540 $ 560 $ 613.33 $ 653.33 c. Recalculate the cash collections with a collection period of 30 days. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) 01 Q2 Q3 280 Q4 306.67 $ 400 $ 270 $ $ Beginning receivables Sales 810 840 920 980 Cash collections 940 x 830 893.33 960 X Ending receivables $ 270 $ 280 $ 306.67 $ 326.67
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