Compute the cash collections from sales for each quarter

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Reference no: EM131867891

The sales budget for your company in the coming year is based on a quarterly growth rate of 20 percent with the first-quarter sales projection at $226 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, −$17, −$9, and $22 million, respectively. Generally, 40 percent of the sales can be collected within the quarter and 45 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 $105 million. Assuming all sales are on credit, compute the cash collections from sales for each quarter. (Enter your answers in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Collected within quarter $ $ $ $

Collection from previous quarter $ $ $ $

Cash collections from sales $ $ $ $

Reference no: EM131867891

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