The Newtown Liquorice Company has projected the following monthly sales amounts for the coming half year....
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The Newtown Liquorice Company has projected the following monthly sales amounts for the coming half year. Sales Beginning Receivables Jan 25,000 Sales Cash Collections Ending Receivables Feb 34,000 The opening accounts receivable balance at the start of the year is $31,000. Newtown has a 30 day collection period. Calculate cash collections in each of the months by completing the following table: Jan Mar Apr 28,000 42,000 Feb Mar May Jun 30,000 25,000 Apr May Jun The Newtown Liquorice Company has projected the following monthly sales amounts for the coming half year. Sales Beginning Receivables Jan 25,000 Sales Cash Collections Ending Receivables Feb 34,000 The opening accounts receivable balance at the start of the year is $31,000. Newtown has a 30 day collection period. Calculate cash collections in each of the months by completing the following table: Jan Mar Apr 28,000 42,000 Feb Mar May Jun 30,000 25,000 Apr May Jun
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Answer rating: 100% (QA)
To calculate the cash collections for each month we need to consider the collection period and the opening and ending accounts receivable balances Giv... View the full answer
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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