The sales budget for your company in the coming year is


The sales budget for your company in the coming year is based on a quarterly growth rate of 10 percent with the first-quarter sales projection at $225.8 million. In addition to this basic trend, the seasonal adjustments for the four quarters are 0, −$16.8, −$8.8, and $21.8 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 sales are bad debt. The bad debts are written off in the second quarter after the sales are made. The beginning accounts receivable balance is $104.8 million. Assuming all sales are on credit, compute the cash collections from sales for each quarter.

Q1 Q2 Q3 Q4

Collected within quarter

Collection from previous quarter

Cash collections from sales

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Financial Management: The sales budget for your company in the coming year is
Reference No:- TGS01236534

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