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Homework answers / question archive / Bedford Seaford Market has a 50-day collection period, so some of its quarterly sales can be collected within the same quarter but some would be postponed to the next quarter
Bedford Seaford Market has a 50-day collection period, so some of its quarterly sales can be collected within the same quarter but some would be postponed to the next quarter. What portion of its quarterly sales will be collected in the next quarter?
A sale which takes place on first day of the quarter will be collected after 50 days.
The sale which takes place on 40th day will be collected on 90th day.
But the sales happening after the 40th day in a quarter wi be collected in next quarter.
Hence, only for first 40 days, the amount is collected in the same quarter while for remaining 50 days, it is collected in next quarter
Portion of sales collected in next quarter = 50/90 = 55.55%
