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? $ 476850 (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 January of 2015 if past billings follow the old billing patter and anticipated billings follow the new billing pattern? $ 476850 (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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 5. Please answer the remaining two questions
![**Cash Flow of Accounts Receivable**
Myers and Associates, a law firm in California, bills its clients on the first of each month. The payment pattern of clients is as follows: 40% pay 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 5% default on their bills. To improve payment speed, the company hired a new accountant. The revised collection schedule proposes: 60% at the end of the first month, 25% at the end of the second month, 10% at the end of the third month, while uncollectible accounts will remain at 5%.
The table provides data on billings:
- **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
**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 billing pattern?
- **Answer:** $476,850 (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 billing pattern?
- **Answer:** [Input required]
These questions guide the understanding of cash flow based on revised billing and collection patterns.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa223f0e3-2554-4766-a321-af5562da259d%2Fe9236d4f-67a8-4dff-92a4-c2ae129c565f%2F11c7w3n_processed.png&w=3840&q=75)
Transcribed Image Text:**Cash Flow of Accounts Receivable**
Myers and Associates, a law firm in California, bills its clients on the first of each month. The payment pattern of clients is as follows: 40% pay 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 5% default on their bills. To improve payment speed, the company hired a new accountant. The revised collection schedule proposes: 60% at the end of the first month, 25% at the end of the second month, 10% at the end of the third month, while uncollectible accounts will remain at 5%.
The table provides data on billings:
- **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
**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 billing pattern?
- **Answer:** $476,850 (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 billing pattern?
- **Answer:** [Input required]
These questions guide the understanding of cash flow based on revised billing and collection patterns.
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