Alliah expects to sell the following number of airplanes in each quarter next year: First quarter: 14 Second quarter: 19 Third quarter: 20 Fourth quarter: 16 Each airplane sells for $1 million, of which 40% is collected in the quarter of sale, 50% in the quarter following sale, and 10% in the second quarter following the sale. Accounts receivable at the beginning of the first quarter is $10,200,000, of which $9,000,000 relates to the prior quarter and $1,200,000 relates to sales two quarters ago. Using these data, what is the computed amount of cash that Alliah will collect in the second quarter of next year? $23,000,000 $16,100,000 Correct!

Answer rating: 100% (QA)

A B C 1 Cash collected in second Quarter of next year First Quarter 14 10000... View the full answer