Question
8. Calculating Payments - Sedman, Corp., has projected the following sales for the coming year. Sales in the year following this one are projected to
8. Calculating Payments - Sedman, Corp., has projected the following sales for the coming year. Sales in the year following this one are projected to be 15 percent greater in each quarter.
| Q1 | Q2 | Q3 | Q4 | |
| Sales | 760 | 840 | 790 | 880 |
- Calculate payments to suppliers assuming that the company 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 |
|
|
- Rework assuming a 60 day payables period
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts |
|
|
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Auditing A Risk Based Approach to Conducting a Quality Audit
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
10th edition
1305080572, 978-1305465664, 1305465660, 978-1305080577
