You are the marketing manager of Tizer Pharma Co. that began operations in Jan 2023. The business was a cash business (ie., did not accept credit) until May 2023, when they were able to build a credit approval process. Therefore, A/R balance as of May 1 2023 was $0. Actual revenues and collections are noted in the chart below. Expected sales revenues for the remaining six months of 2023 are as follows: $ thousands May (actuals) 600 June (actuals) 600 July (forecast) 700 Aug (forecast) 700 Sept (forecast) 800 Oct (forecast) 800 Nov (forecast) 900 Dec (forecast) 900 From July 1 onwards, you expect the collection pattern to be as follows: 20% of sales are cash sales and are received in the month of sale. 50% of sales are on one months credit and paid in the month following sale. 30% of sales are paid in the second month following sale. Required Prepare a schedule of cash received and A/R balance from sales for July to December of the year.

You are the marketing manager of Tizer Pharma Co. that began operations in Jan 2023. The business was a cash business (ie., did not accept credit) until May 2023, when they were able to build a credit approval process. Therefore, A/R balance as of May 1 2023 was $0. Actual revenues and collections are noted in the chart below. Expected sales revenues for the remaining six months of 2023 are as follows:
		$ thousands
May (actuals)		600
June (actuals)		600
July (forecast)		700
Aug (forecast)		700
Sept (forecast)		800
Oct (forecast)		800
Nov (forecast)		900
Dec (forecast)		900
From July 1 onwards, you expect the collection pattern to be as follows:
20% of sales are cash sales and are received in the month of sale.
50% of sales are on one months credit and paid in the month following sale.
30% of sales are paid in the second month following sale.
Required
Prepare a schedule of cash received and A/R balance from sales for July to December of the year.

Cash Received

	May (act)	Jun (act)	Jul	Aug	Sep	Oct	Nov	Dec
Sales (as given)	600000	600000
Cash sales	110000	120000
1 month after sale		310000	300000
2 months after sale			180000
Total Cash Collected	110000	430000
A/R - beginning bal	0	490000
+ Additions	600000	600000
- Collections	-110000	-430000
A/R - ending bal	490000	660000