Red Barn Has Estimated Quarterly Sales, Starting with Quarter 1

Red Barn has estimated quarterly sales, starting with Quarter 1, of $42,600, $45,300, $44,800, and $42,700.Purchases are equal to 71 percent of the following quarter's sales.The accounts receivable period is 30 days and the accounts payable period is 45 days.Assume there are 30 days in each month.By how much will the firm's collections exceed its payments for Quarter 3?

A) $14,088.86
B) $11,884.33
C) $13,904.17
D) $12,925.86
E) $12,211.17

Correct Answer:

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