Question

XYZ company has ended the year with a receivable balance of $300 for items sold on 31st December 20xx. It forecasted the sales to reach $350 in Q1 and $500 in Q2 with both sales occur within the first week of each quarter. The company has a 20-day average collection period. How much cash will the company collect in Q1? A.200 B.500 c. 650 d.300.. choice the correct multiple choice. show me full correct calculations

Answer 1

Answer: C. 650

Step-by-step explanation:

Calculation:

Q1 sales: $350

Q2 sales: $500

Q1 receivables balance: $300

Cash collected in Q1 = Q1 sales + Q1 receivables balance

= $350 + $300

= $650

Therefore, the company will collect $650 in Q1.