The XYZ company specializes in homemade chocolates and receives all income from sales The sales revenue estimates (in million S) for the company arc at follows: Q1 = 500. Q2 = 550. Q3 = 600. QA = 650. Q1 of next year = 650. The average collection period for accounts receivables is 30 days. Beginning receivable« (Q1 beginning) is $250 million. The purchases arc 50% of next quarter sales Beginning payables (Ql beginning) is SI50 million. The accounts payable period is 30 days. Wages and oilier expenses every quarter arc 30% of the sales revenue of that quarter There are no other expenses The beginning cash balance (Q1 beginning) is $30 million. How much will be the cash balance at the end of Quarter 3?

Answer rating: 100% (QA)

Q1 Q2 Q3 Q4 Q1 Cash at beginning 30 20 40 Add Collection of receivables 250 500 550 Less Payment of ... View the full answer