Chapter 13, Question 5. Attached is a similar question with answers. Please answer the same three parts for the new question **Cash Flow of Accounts Receivable**Myers and Associates, a well-known law firm in California, bills its clients on the first of each month. Clients pay systematically as follows: 40% of the bill at the end of the first month, 30% at the end of the second month, 20% at the end of the third month, 5% at the end of the fourth month, and the remaining 5% default on their bills. A new accountant has implemented a new collection strategy promising faster payments. The revised times are 60% at the end of the first month, 25% at the end of the second month, and 10% at the end of the third month, leaving defaults unchanged at 5%.Below is a table displaying data on the actual billings for the fourth quarter and anticipated billings for the first quarter.| Fourth Quarter Actual Billings | First Quarter Anticipated Billings ||-------------------------------|------------------------------------|| Oct. - $526,000 | Jan. - $457,000 || Nov. - $422,000 | Feb. - $478,000 || Dec. - $380,000 | Mar. - $548,000 |**Questions:**1. **What is the anticipated cash flow for January 2015 if past billings follow the old billing pattern and anticipated billings follow the new pattern?** - $498,900 (Rounded to the nearest dollar.)2. **What is the anticipated cash flow for February 2015 if past billings follow the old billing pattern and anticipated billings follow the new pattern?** - $498,150 (Rounded to the nearest dollar.)3. **What is the anticipated cash flow for March 2015 if past billings follow the old billing pattern and anticipated billings follow the new pattern?** - $513,000 (Rounded to the nearest dollar.)This anticipated cash flow reflects the adjustments made for quicker payments, addressing the collections more efficiently while maintaining the status of uncollectible accounts. For a detailed breakdown, use the provided table to compute the cash flows by applying the old and new percentages for expected payments. **Cash Flow of Accounts Receivable**Myers and Associates, a renowned law firm in California, schedules client billing on the first day of each month. Clients currently make payments as follows:- 40% at the end of the first month- 30% at the end of the second month- 20% at the end of the third month- 5% at the end of the fourth month- 5% default on their billsThe firm has hired a new accountant to expedite client payments. The revised schedule aims for:- 60% at the end of the first month- 25% at the end of the second month- 10% at the end of the third month- 5% default, as beforeThe objective is to project the new cash flow for the first quarter of 2015 if the updated system starts in January, while fourth-quarter payments remain unchanged.**Billing Table Overview:**- **Fourth Quarter Actual Billings** - October: $489,000 - November: $393,000 - December: $376,000- **First Quarter Anticipated Billings** - January: $435,000 - February: $463,000 - March: $510,000**Question:**Calculate the anticipated cash flow for January 2015, assuming previous billings adhere to the old pattern and future billings follow the new pattern.$ \text{Answer in nearest dollar: } $ \_\_\_

The question is to find estimated cash flow in a month in form of different collection termestimate cash flow in month of Jan-2015. 0.60*Jan+0.3*Dec +0.2*Nov+0.05*Oct =0.60*435000+0.3*376000+0.2*393000+0.05*489000=$476,850

Cash flow of accounts receivable. Myers and Associates, a famous law firm in California, bills its clients on the first of each month. Clients pay in the following fashion: 40% pay at the end of the first month, 30% pay at the end of the second month, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. The company has hired a new accountant, who promises to increase the speed of payment by clients. The new collection times will be 60% at the end of the first month, 25% at the end of the second month, and 10% at the end of the third month. The uncollectible accounts will remain at 5%. What will be the new cash flow with this change for the first quarter of 2015 if the new system takes effect in January? Assume payments from the fourth quarter will stay on the old payment schedule. Click on the icon O in order to copy its content into a spreadsheet Fourth Quarter Actual Billings Oc, First Quarter Anticipated Billings Nov. Dec. Jan. Feb. Mar. $489,000 $393,000 $376,000 $435,000 $463,000 $510,000 What is the anticipated cash flow for January of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern? $ (Round to the nearest dollar.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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