Question:
The sales budget for your company in the coming year is based on a 20 percent quarterly growth rate with the first-quarter sales projection at $150 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, -$16, -$8 and $12 million, respectively. Generally, 50 percent of the sales can be collected within the quarter and 45 percent in the following quarter, the rest of the sale are bad debt. The bad debts are written off in the second quarter after the sales are made. The beginning accounts payable balance is $ 72 million, Assuming all sales are on credit, compute the cash collections from sales for each quarter.