Davis Company Has Forecast Its Sales as Follows Davis Has Experienced Collections of 40% During the Month of August

question 69

Essay

Davis Company has forecast its sales as follows:
$\begin{array}{ll}\text { August } & \$ 180,00 \text { (actual) } \\\text { September } & \$ 280,000 \text { (actual) } \\\text { October } & \$ 360,000 \\\text { November } & \$ 400,000 \\\text { December } & \$ 450,000\end{array}$
Davis has experienced collections of 40% during the month of sale, 50% the month after the sale, and 10% the second month after the sale.
Required:
a. Prepare a schedule of cash receipts for the 3-month period October - December.
b. What will the Accounts Receivable balance be on December 31?

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Definitions:

Transformational Leadership

Is a style of leadership where the leader works with teams to identify needed change, creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of a group.

Charismatic

Possessing a special magnetic charm or appeal that inspires devotion or enthusiasm in others.

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Groups that are directed by a single leader who makes decisions unilaterally, without input from group members.

Laissez-Faire

A leadership or management style characterized by a hands-off approach, allowing individuals or teams to make decisions and solve problems independently.