Calculating Payment s Lewellen Products has projected the following sales for the coming year:

Q1 Q2 Q3 Q4 Sales $620 $555 $705 $780 Sales in the year following this one are projected to be 15 percent greater in each quarter.

a. Calculate payments to suppliers assuming that Lewellen places orders during each quarter equal to 30 percent 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.

c. Rework

(a) assuming a 60-day payables period.