Accounts receivable at the beginning of the year are $270. The company 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. A negative answer should be indicated by a minus sign.)

Complete Question

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

Q1 $800

Q2 $830

Q3 $910

Q4 $990

Accounts receivable at the beginning of the year are $270. The company 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. A negative answer should be indicated by a minus sign.)

Beginning receivables (a)

Sales (b)$800.00$830.00$910.00$990.00

Cash collections (c )

Ending receivables

The account receivable at the beginning of the year are $270 Given

We'll use the sales row to calculate the account receivable at the beginning of other quarters.

Q1 = $270

Q2 = $800/2 = $400

Q3 = $830/2 = $415

Q4 = $910/2 = $455

Calculating the cash collections...

This is calculated by -1(Beginning Receivable + ½(Sales))

Q1 = -(270 + ½ * 800) = $670

Q2 = -(400 + ½ * 830) = -$815

Q3= -(415 + ½ * 910) = -$870

Q4 = -(455 + ½990) = -$950

The 45 days collection period means that all receivable outstanding would be collected in current month plus ½ of sales of current month

The complete table is

Beginning receivables (a) $270 $400 --- $415 --- $455

Sales (b)$800.00 $830.00 --- $910.00 --- $990.00

Cash collections (c ) -$670 --- -$815 --- -$870 --- -$950

Ending receivables (a+b-c)$430.00$415.00$455.00$495.00

Explanation:

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.

answer; ///liability;