Bell Hill Mfg. is considering a rights offer. The company has determined that the ex-rights price would be $78. The current pric
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Complete question:
Westmore Products has projected the following quarterly sales. The accounts receivable at the beginning of the year is $380 and the collection period is 45 days. What are collections for the first quarter?
Quater: Q1 Q2 Q3 Q4
Sales : $675, $730, $815, $1,080
Answer:
$717.50
Explanation:
Given:
Accounts receivable at the beginning of the year = $380
Collection period = 45 days
Required:
Find the collections for the first quarter.
To find the collections for the first quarter, use the formula below:
First quarter collections = =Account receiveble opening balance to be recoverd in 45 days + [1st quarter sales /90*45]
Collections for first quarter = $717.50