Reference no: EM133077704

Question - A company starts up production in October of each year in anticipation of the winter holidays, spring break, and eventually summer sales. The company then shuts down at the end of March for six months. For the Receivables, historically, 40% of sales are in cash (e-transfer, to be precise), 30% are paid within 30 days, and the remaining 30% are paid within 60 days. (Some businesses used to take longer than 60 days, but don't need to deal with them.) Here is the six month sales forecast: October=90, November=170, December =80, January=150, February=190, March=180 (All numbers are in 1,000s.) Build a Receivables budget and tell me what receivables will be at the end of March.