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Paymore Products places orders for goods equal to 80% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows:


Quarter in Coming Year
Following Year

  First   Second   Third   Fourth
   First Quarter
  Sales forecast $480 $470 $440 $490
$490        

Now suppose that Paymore's customers pay their bills with a 2-month delay. What is the forecast for Paymore's cash receipts in each quarter of the coming year? Therefore, on average, two-fourths of sales are collected in the quarter that they are sold, and two-fourths are collected in the following quarter. Assume that sales in the last quarter of the previous year were $440. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Quarter      Collections
1 $         
2         
3         
4         

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  • Category:- Accounting Basics
  • Reference No.:- M9951128

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