a. ABC places order for goods equal to 75% of its sales forecast in the next quarter. What will be orders in each quarter of the year if the sales forecasts for the next 5 quarters are as follows?

Quarter in Coming Year Following Year

First Second Third Fourth First Quarter

Sales Forecast $744 $720 $672 $768 $768

b. Calculate ABC cash payments to its suppliers under the assumption that the firm pays for its goods

with a 1 month delay. Therefore, on average, two-thirds of purchases are paid for in the quarter in

which they are purchased and one-third are paid in the following quarter.

c. Suppose ABC customers pay their bills with a 2-month delay. What is the forecast for ABC Cash

receipts in each quarter of the coming year? Assume that sales in the last quarter of the previous

year were $672.