The Bandon Pine Corporations purchases from suppliers in a quarter are equal to 75 percent of the

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The Bandon Pine Corporation’s purchases from suppliers in a quarter are equal to 75 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $110 per quarter. No capital expenditures are planned. Here are the projected quarterly sales:Sales Q1 $1,925 Q2 $2,460 Q3 $2,120 Q4 $1,850

Sales for the first quarter of the following year are projected at $1,950. Calculate the company’s cash outlays by completing the following:Payment of accounts Wages, taxes, and other expenses Long-term financing expenses (interest and dividends)

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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