Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. Calculate Paymore's cash payments to its suppliers under the assumption that the firm pays for its goods with a 1-month delay. Therefore, on average, two-thirds of purchases are paid for in the quarter that they are purchased, and one-third are paid in the following quarter. The sales forecasts for the next five quarters are as follows:

Transcribed Image Text:

Following Year First SecondThird Fourth First Quarter S372.00 S360.00 S336.00 S 384.00S384.00 Quarter in Coming Year Sales forecast Order size Payment in current Payment in next qu 75% of sales forecast in the next quarter 2/3 113