Question
Brunell Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $660 $780 $900 $870 Sales in the year following
Brunell Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $660 $780 $900 $870 Sales in the year following this one are projected to be 25 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume that the company pays immediately. a. What is the payables period in this case? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Payables period What are the payments to suppliers each quarter? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Q1 Q2 Q3 Q4 Payment of accounts $ $ $ $ b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period. (Do not round intermediate calculations. Round your answers to 2 decimal places e.g., 32.16.) Q1 Q2 Q3 Q4 Payment of accounts $ $ $ $ c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 60-day payables period. (Do not round intermediate calculations. Round your answers to 2 decimal places e.g., 32.16.) Q1 Q2 Q3 Q4 Payment of accounts $ $ $ $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started