What the projected balance in receivables at end of March

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Reference no: EM133012228

Question - A new company has projected sales in January of $150,000 and sales are expected to increase by $50,000 per month based on the contracts that they have signed.

All sales are on credit and are expected to take two months to collect.

The company is financed with a credit line and is eligible for financing of 80% of its receivables balance at any point in time.

Required -

1) What the projected balance in receivables at the end of March?

2) What the projected line of credit the firm is eligible for at the end of June?

Reference no: EM133012228

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