Question
Acme Co. has projected the following sales for 2019: Q1 = $870 Q2 = $920 Q3 = $850 Q4 = $950 Sales for each quarter
Acme Co. has projected the following sales for 2019:
Q1 = $870
Q2 = $920
Q3 = $850
Q4 = $950
Sales for each quarter in 2020 are projected to be 20% greater than the previous quarter (ie. Q1 2020 is projected to be 20% higher than Q4 2019).
Calculate expected payments to suppliers in each quarter for 2019, assuming:
1) Acme places orders during each quarter equal to 40 percent of projected sales for the next quarter. For example, if Q1 2020 sales are expected to be $1140, then purchases in Q4 of 2019would beestimated to be $1140x 0.4 = $456
2) Acme's average days of payables is 90 days.
Q1 payments =
Q2 payments =
Q3 payments =
Q4 payments =
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