The Bruin Corporations purchases from suppliers in a quarter are equal to 75 percent of the next

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The Bruin 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 30 percent of sales, and interest and dividends are $110 per quarter. No capital expenditures are planned. Projected quarterly sales are:Q4 Q3 Q2 Q1 $1,830 $1,610 Sales $1,380 $1,530

Sales for the first quarter of the following year are projected at $1,500. Calculate Bruin’s cash outlays by completing the following:

Q1 Q2 Q3 Q4 Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total

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Essentials Of Corporate Finance

ISBN: 9780073382463

7th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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