Homework SourseAssume the following facts about a firm If sales are evenly
Assume the following facts about a firm:
If sales are evenly distributed throughout the year, what is next year\'s projected ending accounts receivable balance?
$1,665,000
$138,750
$1,110,000
none of the above
| Projected selling price per unit | $3.70/unit |
| Projected monthly unit sales | 300,000 units |
| Typical receivables balance | 1.5 months of sales |
Solution
Accounts Receivable Balance
=>Price of each unit * Number of Units * Typical receivable balance
=> $3.70/unit * 300,000 units * 1.5
=> $1,665,000
Hence the correct answer is Option A
