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 percent 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 =

HINT: This problem is very similar to the examples regarding cash receipts (from sales and receivables), only this problem looks at cash disbursements involving purchases and payables. Recall that the average days of payables (payables period) tells us how long, on average, it takes for a company to pay for its purchases. So if the average days payable is 0, then the company pays for its purchases immediately. If the payables period is 30, then the company tends to take about 30 days to pay for its purchases. This would imply that anything purchased in the first 2 months of a quarter would be paid for in the same quarter (within 30 days of the purchase), but anything purchased in the last month of the quarter wouldn't be paid for until the first month of the next quarter.