Assume the following facts about a firm: $\begin{array}{ll}
\text { Projected selling price per urit } & \$ 3.70 / \text { unit } \
\text { Projected monthly urit sales } & 300,000 \text { urits } \
\text { Typical receivables balance } & 1.5 \text { months of sales }
\end{array}$ If sales are evenly distributed throughout the year, what is the next year's projected ending accounts receivable balance?

Question

Quizplus · Accepted Answer

The projected ending accounts receivable balance is equal to the typical receivables balance multiplied by the projected monthly unit sales multiplied by the projected selling price per unit. In this case, the typical receivables balance is 1.5 months of sales, the projected monthly unit sales are 300,000 units, and the projected selling price per unit is $3.70. Therefore, the projected ending accounts receivable balance is 1.5 * 300,000 * $3.70 = $1,665,000.

Assume the Following Facts About a Firm If Sales Are Evenly Distributed Throughout the Year, What Is