1. Pet Delight specializes in gourmet pet treats. Sales estimates in millions for the next two quarters are $500 for 1Q and $600 for 2Q. All sales are made on credit. The company's beginning accounts receivable balance is $250. The company's Days in Receivables is 30 days. Cash collections from Accounts Receivables in 1Q would be estimated to be:
a. $417
b. $250
c. $750
d. $583
e. $167
1. Continuing from above, Pet Delight has a Payables period of 45 days. Purchases are expected to be 50% of next quarter's sales. The company's beginning Accounts Payable balance is $125. Using sales data from problem 10, disbursements during 1Q would be estimated to be:
a. $275
b. $425
c. $725
d. $325
e. $583