Globex Corporation Is Estimating Its Cash Collections for the First

question 94

Essay

Globex Corporation is estimating its cash collections for the first quarter of next year (January, February and March).The company has provided you with monthly sales along with historical cash collections data.Calculate the total cash received for January, February and March given the following data:
$$\begin{array}{ | c | c | c | c | c | c | } \hline & \text { Navember } & \text { December } & \text { January } & \text { February } & \text { March } \\\hline \text { Sales } & \$ 60,000 & \$ 80,000 & \$ 95,000 & \$ 105,000 & \$ 120,000 \\\hline\text { Estimated Collection: }\\\hline 75 \% & \text { In month of sale } & & & \\\hline 20 \% & \text { In month after sale } & & & \\\hline 5 \% & \text { In second month after sale } & & & \\\hline\end{array}$$

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Definitions:

Association Constant

A quantitative measure of the strength of the interaction between two molecules in a complex.

Equilibrium Constant

The equilibrium constant is a number that expresses the ratio of the concentrations of the products to the reactants at equilibrium, symbolized as K_eq in chemical reactions.

Products

The substances that result from a chemical reaction, situated on the right-hand side of a chemical equation.

Reactants

Substances consumed or altered in the course of a chemical reaction, transitioning from initial substances to products.