Assuming the monthly sales forecasts given previously are accurate and that customers pay exactly as was predicted, what would the receivables level be at the end of each month? To reduce calculations, assume that 30% of the firm€™s customers pay in the month of sale, 50% pay in the month following the sale, and the remaining 20% pay in the second month following the sale. Note that this is a different assumption than was made earlier. Also assume there are 91 days in each quarter. Use the following format to answer parts d and e:

Rich Jackson, a recent finance graduate, is planning to go into the wholesale building supply business with his brother, Jim, who majored in building construction. The firm would sell primarily to general contractors, and it would start operating next January. Sales would be slow during the cold months, rise during the spring, and then fall off again in the summer, when new construction in the area slows. Sales estimates for the first 6 months are as follows (in thousands of dollars):

The terms of sales are net 30, but because of special incentives, the brothers expect 30% of the customers (by dollar value) to pay on the 10th day following the sale, 50% to pay on the 40th day, and the remaining 20% to pay on the 70th day. No bad debt losses are expected because Jim, the building construction expert, knows which contractors are having financialproblems.

Quarterly Month Sales End-of-Month Receivables Sales ADS DSO (A/R)(ADS) January $100 Febuary 200 March 300 April May 200 une S 70 160 250 $600 $6.67 37.5 300 100 ayS200 100 $100 arch S300 Mav January February April 300 June 200