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Paymore Products places orders for goods equal to 75% of its sales forecast in the next...

Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows: Quarter in Coming Year Following Year First Second Third Fourth First Quarter Sales forecast $372 $360 $336 $384 $384 On average, one-third of sales are collected in the quarter that they are sold, and two-thirds are collected in the following quarter. Assume that sales in the last quarter of the previous year were $336. What is the forecast for Paymore’s cash receipts in each quarter of the coming year? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)vv

Homework Answers

Answer #1

Cash receipt in each quarter = sales collections - purchase payments

As the information is not given, purchase payments are assumed to made in the same quarter that the purchase order is placed.

The calculations are below :

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