Xenos Company Has the Following Sales Projections for the Coming

question 10

Essay

Xenos Company has the following sales projections for the coming months:
$$\begin{array} { l c } \text { Month } & \text { Sales } \\\text { January } & \$ 60,000 \\\text { February } & 68,000 \\\text { March } & 75,000 \\\text { April } & 80,000 \\\text { May } & 95,000 \\\text { June } & 90,000\end{array}$$
Xenos collects 20% of its sales in the month of sale, 45% in the month following the sale, and 35% in the second month following the sale.
Required:
a. Prepare a schedule of cash receipts for the three months April through June.
b. What would be the accounts receivable balance on June 30?

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Definitions:

Financial Distress

An instance wherein a business faces challenges or fails to satisfy its monetary debts to creditors.

Trade-off

The process of sacrificing one quality, quantity, or property to gain another.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered or used but not yet paid for.

Current Assets

Current assets include all assets that a company expects to convert into cash or use up within one business cycle, such as cash, inventory, and accounts receivable.