Question 1 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 followingfashion: 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 be60% 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 willbe 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 theold payment schedule.Click on the icon D in order to copy its content into a spreadsheetFourth Quarter Actual BillingsFirst Quarter Anticipated BillingsOt.Nov.Dec.JanFeb.Mar.$504,000$402,000$356,000$430,000$473,000$510,000What 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.)What is the anticipated cash flow for February of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern?(Round to the nearest dollar. )What is the anticipated cash flow for March of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern?(Round to the nearest dollar.)

In order to calculate the anticipated cash flow for given months, we will follow new collection %…

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.) What is the anticipated cash flow for February of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern? (Round to the nearest dollar.) What is the anticipated cash flow for March of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern? (Round to the nearest dollar.)

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.) What is the anticipated cash flow for February of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern? (Round to the nearest dollar.) What is the anticipated cash flow for March of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern? (Round to the nearest dollar.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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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 secondmonth, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2015 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows: Fourth Quarter Actual Billings First Quarter Anticipated Billings Oct. Nov. Dec. Jan. Feb. Mar. $316,000 $253,000 $235,000 $266,000 $288,000 $315,000 What is the anticipated cash flow for February of 2015 if past billings and anticipated billings follow this same pattern? (Round to the nearest dollar.)
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K 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. Myers wants to know the anticipated cash flow for the first quarter of 2015 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows: Click on the icon in order to copy its content into a spreadsheet Fourth Quarter Actual Billings Oct. $421,000 Nov. $334,000 Dec. $305,000 First Quarter Anticipated Billings Jan. $370,000 Feb. $399,000 Mar $447,000 What is the anticipated cash flow for January of 2015 if past billings and anticipated billings follow this same pattern? (Round to the nearest dollar)
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