Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 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 2019 would be estimated to be $1140 x 0.4 = $456

2) Acme's average days of payables is 90 days.

Q1 payments =

Q2 payments =

Q3 payments =

Q4 payments =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Theory And Practice

Authors: Aswath Damodaran

2nd Edition

0471283320, 9780471283324

More Books

Students also viewed these Finance questions