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Cash Management task 1.3-b


Can someone please help me with the following question:

The trade receivables at the end of period 3 is forecast to be:

Sales revenue period 1 - 148800
Sales revenue period 2 - 151200
Sales revenue period 3 - 146400

The company estimates that 15% of sales are paid in the month that the sale is made, 35% are paid in the following month, while 45% are paid in two months. The balance is potential irrecoverable debt and a provision for irrecoverable debt is charged in the month of sale.

the answer is 207480. I cannot get this figure.

Help would be much appreciated!


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