Maurice Tutor

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Category > Accounting Posted 26 Jul 2017 My Price 3.00

Sylvia Gift Shop

Chapter Study Questions Resource: Chapter 4 of the Financial Management: Principles and Applications text, by Keown. 4-2A (Pro forma accounts receivable balance calculation) On March 31, 2003, the Sylvia Gift Shop had outstanding accounts receivable of $20,000. Sylvia’s sales are roughly evenly split between credit and cash sales, with half the credit sales collected in the month after the sale and the remainder two months after the sale. Historical and projected sales for the gift shop are: MONTH SALES January $15,000 February 20,000 March $30,000 April (projected) 40,000 1. Under these circumstances, what should the balance in accounts receivable be at the end of April? 2. How much cash did Sylvia realize during April from sales and collections?

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Maurice Tutor
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Status NEW Posted 26 Jul 2017 11:07 AM My Price 3.00

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