23 Calculating Payments Lewellen Products has projected the following sales for the coming year: Q1 Q2 Q3
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23 Calculating Payments Lewellen Products has projected the following sales for the coming year:
Q1 Q2 Q3 Q4 Sales (£) 540 630 710 785 Sales in the year following this one are projected to be 15 per cent greater in each quarter.
(a) Calculate payments to suppliers assuming that Lewellen places orders during each quarter equal to 30 per cent of projected sales for the next quarter. Assume that the company pays immediately. What is the payables period in this case?
Q1 Q2 Q3 Q4 Payment of accounts (£)
(b) Rework
(a) assuming a 90-day payables period.
Q1 Q2 Q3 Q4 Payment of accounts (£)
(c) Rework
(a) assuming a 60-day payables period.
Q1 Q2 Q3 Q4 Payment of accounts (£)
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