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Big Red's purchases from suppliers in a quarter are equal to 71 percent of the next quarter's forecast sales. The payables period is 60 days;
Big Red's purchases from suppliers in a quarter are equal to 71 percent of the next quarter's forecast sales. The payables period is 60 days; other expenses are paid when incurred Wages, taxes, and other expenses are 24 percent of sales, and interest and dividends are $40 per quarter. No capital expenditures are planned. Projected quarterly sales, starting with Q1, are $1, 520, $1, 580, $1, 630, and $1, 590, respectively. Sales for the first quarter of the following year are projected at $1, 540. What is the amount of the total disbursements for Q2? $1, 601 $1, 538 $1.564 $1, 553 $1, 520
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