Question
Acme Co. has projected the following sales for 2022: Q1 = $870 Q2 = $920 Q3 = $850 Q4 = $950 Sales for each quarter
Acme Co. has projected the following sales for 2022:
Q1 = $870
Q2 = $920
Q3 = $850
Q4 = $950
Sales for each quarter in 2023 are projected to be 12 percent greater than the previous quarter (ie. Q1 2023 is projected to be 12% higher than Q4 2022).
Calculate expected payments to suppliers in each quarter for 2022, assuming:
1) Acme places orders during each quarter equal to 50 percent of projected sales for the next quarter. For example, if Q1 2023 sales are expected to be $1064, then purchases in Q4 of 2022 would be estimated to be $1064 x 0.5 = $532
2) Acme's average days of payables is 90 days.
Q1 payments
Q2 payments =
Q3 payments =
Q4 payments =
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