Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Brunell Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $390 $480 $630 $570 Sales in the year following

Brunell Products has projected the following sales for the coming year:

Q1 Q2 Q3 Q4
Sales $390 $480 $630 $570

Sales in the year following this one are projected to be 20 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 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 30 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 30 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

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions

Question

b. Why were these values considered important?

Answered: 1 week ago