View the step-by-step solution to:

The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $ 730 $ 760 $ 840 $ 920 a.

The Litzenberger Company has projected the following quarterly sales amounts for the coming year:


    Q1     Q2     Q3     Q4  
  Sales $ 730   $ 760   $ 840   $ 920  


a.

Accounts receivable at the beginning of the year are $320. Litzenberger 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 2 decimal places (e.g., 32.16). Negative amounts should be indicated by a minus sign.)


  Q1   Q2   Q3   Q4  
  Beginning receivables        
  Sales 730   760   840   920  
  Cash collections        
         
  Ending receivables        
         


b.

Recalculate the cash collections with a collection period of 60 days. (Do not round intermediate calculations and round your answers to 2 decimal places (e.g., 32.16). Negative amounts should be indicated by a minus sign.)


  Q1   Q2   Q3   Q4  
  Beginning receivables        
  Sales 730   760   840   920  
  Cash collections        
         
  Ending receivables        
         


c.

Recalculate the cash collections with a collection period of 30 days. (Do not round intermediate calculations and round your answers to 2 decimal places (e.g., 32.16). Negative amounts should be indicated by a minus sign.)


  Q1   Q2   Q3   Q4  
  Beginning receivables        
  Sales 730   760   840   920  
  Cash collections        
         
  Ending receivables        
         


Top Answer

Please see the attached... View the full answer

Litzenberger Company.docx

a.45-day
collection
period. Q1 Q2 Q3 Q4 Beginning
320
receivables 365 380 420 760 840 920 -745 -800 -880 Sales 730 Cash
-685
collections collection
=Begining
receivable+ 320+(730* 365+(760*45...

Sign up to view the full answer

Other Answers

Answer a AR Collection period = 45 days i.e 1.5 months Q1 Q2 Q3 Q4 Beginning Receivables $290 $355 $370 $410 Sales $710 $740... View the full answer

Working on your question am an expert in this area..would you mind posting it in... View the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online