Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Trivie, Inc forecasts total monthly sales and total monthly purchases for the first three months of 2021 to be as follows: Month Total Monthly Sales

image text in transcribed
Trivie, Inc forecasts total monthly sales and total monthly purchases for the first three months of 2021 to be as follows: Month Total Monthly Sales January $9,000 February $15,000 March $19,000 Assuming the following: Total Monthly Purchases $6,000 $7,800 $9,400 . 75 percent of all sales are on credit and 25 percent of all sales are cash sales Cash sales are collected immediately and for all credit sales, the average collection period (ACP) will be 40 days for this period COGS for Trivle, Inc. will be 60% per month The accounts payable day's period will be 20 days for each of these months Sales, collections and purchases will be evenly distributed throughout each month (assume 30 days per month) The December 30, 2020 accounts receivable balance was $4,000. The December 30, 2020 accounts payable balance was $1,000 What will Trivle Inc 's accounts receivable balance be on February 30 (i.e., the last day in February)? Record your answer as a positive dollar amount rounded to u decimal places, but do not include a dollar sign or any commas in your answer. For example record $2.321.204,832 as 2321205

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

10th Edition

0073530697, 9780073530697

More Books

Students also viewed these Finance questions