Question
The sales budget for your company in the coming year is based on a 10 percent quarterly growth rate with the first-quarter sales projection at
The sales budget for your company in the coming year is based on a 10 percent quarterly growth rate with the first-quarter sales projection at $225.4 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, $16.4 million, $8.4 million, and $21.4 million, respectively. Generally, 40 percent of the sales can be collected within the quarter and 50 percent in the following quarter; the rest of the sales are bad debt. The bad debts are written off in the second quarter after the sales are made. The beginning accounts receivable balance is $104.4 million. Assuming all sales are on credit, compute the cash collections from sales for each quarter. (Do not round intermediate calculations. Enter the answers in dollars. Omit $ sign in your response.)
Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | |||||
Collected within quarter | $ | $ | $ | $ | ||||
Collection from previous quarter | $ | $ | $ | $ | ||||
Cash collections from sales | $ | $ | $ | $ | ||||
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