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Cash payments ( 1 6 marks total ) Karamazov Brothers Inc. has projected the following sales for the coming year ( s ) : Actual

Cash payments (16 marks total)
Karamazov Brothers Inc. has projected the following sales for the coming year(s):
Actual Projected
Q4,20x1 Q1,20x2 Q2,20x2 Q3,20x2 Q4,20x2 Q5,20x3
Total sales $900 $900 $980 $940 $1,040 $990
a. Calculate payments to suppliers if Karamazov places orders during each quarter equal to 30% of projected sales for the next quarter. Assume that Karamazov pays immediately. (8 marks)
b. Calculate payments to suppliers assuming a 90-day payables period. (4 marks)
c. Calculate payment to suppliers assuming a 60-day payables period.

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