Here is a forecast of sales by National Bromide for the first 4 months of 2022 (figures in thousands of dollars): Month: Cash sales Sales on credit 1 27 3 4 30 26 160 180 150 130 Month 3 Month 4 2 36 On average, 50% of credit sales are paid for in the current month, 30% in the next month, and the remainder in the month after that What are the expected cash collections in months 3 and 4? Note: Enter your answers in whole dollars not in thousands of dollars. Expected Cash Collections

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
icon
Concept explainers
Question
Here is a forecast of sales by National Bromide for the first 4 months of 2022 (figures in thousands of dollars):
Month:
Cash sales
Sales on credit
1
2
3
4
27
36
30
26
160 180 150 130
On average, 50% of credit sales are paid for in the current month, 30% in the next month, and the remainder in the month after that.
What are the expected cash collections in months 3 and 4?
Note: Enter your answers in whole dollars not in thousands of dollars.
Month 3
Month 4
Expected Cash
Collections
Transcribed Image Text:Here is a forecast of sales by National Bromide for the first 4 months of 2022 (figures in thousands of dollars): Month: Cash sales Sales on credit 1 2 3 4 27 36 30 26 160 180 150 130 On average, 50% of credit sales are paid for in the current month, 30% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4? Note: Enter your answers in whole dollars not in thousands of dollars. Month 3 Month 4 Expected Cash Collections
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education