Sorry if this is the wrong place for this financial concept question, it's about the cash budget.
Accounts receivables at the beginning of the year are $345. The company has a 60 day collection period. Calculate cash collection in each of the four quarters.
Q1: 820 Q2: 850 Q3: 930 Q4: 1010
So in the case of a 45 day collection period I know that we must first calculate beginning cash + 1/2 * sales
We multiplied the sales by half because 45 days is a half quarter, so for a 60 day collection period it should be multiplied by 2/3 but that is wrong from what my professor told us as the correct way would be by 1/3.
I'm confused, can someone explain this part for me? Why is it 1/3 and not 2/3? Same thing for a 30 day receivable period.