The MacFarlane Company has projected the following quarterly

The MacFarlane Company has projected the following quarterly sales amounts for the coming year: Q1 $8,220 Q4 $7,890 Sales $9,990 $9,390 a. Accounts receivable at the beginning of the year are $3,990. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Q1 Q4 Beginning receivables Sales Cash collections 8,220 9,990 9,390 7,890 Ending receivables b. Accounts receivable at the beginning of the year are $3,990. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Q1 Q2 Q4 Beginning receivables Sales Cash collections 8,220 9,990 9,390 7,890 Ending receivables c. Accounts receivable at the beginning of the year are $3,990. The company has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Q1 Q4 Beginning receivables Sales Cash collections 8,220 9,990 9,390 7,890 Ending receivables

Solution

The Macfarlane company has projected Quarter 1 Quarter 2 Quarter 3 Quarter 4 Beginning Receivable $   3,990 $   4,110 $   4,995 $   4,695 Sales $   8,220 $   9,990 $   9,390 $   7,890 Cash Collection =(Sales*(90-45)/90)+ Beginning Receivable $   8,100 $   9,105 $   9,690 $   8,640 Ending Receivable =Beginning Receivable+Sales-Cash Collection $   4,110 $   4,995 $   4,695 $   3,945 COLLECTION 60 days Quarter 1 Quarter 2 Quarter 3 Quarter 4 Beginning Receivable $   3,990 $   5,480 $   6,660 $   6,260 Sales $   8,220 $   9,990 $   9,390 $   7,890 Cash Collection =(Sales*(90-60)/90)+ Beginning Receivable $   6,730 $   8,810 $   9,790 $   8,890 Ending Receivable =Beginning Receivable+Sales-Cash Collection $   5,480 $   6,660 $   6,260 $   5,260 COLLECTION 30 days Quarter 1 Quarter 2 Quarter 3 Quarter 4 Beginning Receivable $   3,990 $   2,740 $   3,330 $   3,130 Sales $   8,220 $   9,990 $   9,390 $   7,890 Cash Collection =(Sales*(90-30)/90)+ Beginning Receivable $   9,470 $   9,400 $   9,590 $   8,390 Ending Receivable =Beginning Receivable+Sales-Cash Collection $   2,740 $   3,330 $   3,130 $   2,630