Question
Big Reds 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 Reds 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?
a - $1,564
b - $1,520
c - $1,601
d - $1,538
e - $1,553
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