Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dynamic Futon forecasts the following purchases from suppliers: Feb. Jan. 41 Mar. 34 Apr. 31 Value of goods ($ millions) May 29 Jun. 29 37

image text in transcribed

Dynamic Futon forecasts the following purchases from suppliers: Feb. Jan. 41 Mar. 34 Apr. 31 Value of goods ($ millions) May 29 Jun. 29 37 a. Fourty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of 1 month. If Dynamic Futon starts the year with payables of $31 million, what is the forecasted level of payables for each month? (Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 1 decimal place.) Jan. Feb. Mar. Apr. May Jun. Payables b. Suppose that, from the start of the year, the company stretches payables by paying 40% after 1 month and 20% after 2 months. (The remainder continue to be paid cash-on-delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment. Assume that Dynamic Futon didn't have any payable balance at the start of the year. (Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 1 decimal place.) Jan. Feb. Mar. Apr. May Jun. Payables

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

Venture capital and the finance of innovation

Authors: Andrew Metrick

2nd Edition

9781118137888, 470454709, 1118137884, 978-0470454701

More Books

Students also viewed these Finance questions

Question

=+14. We are doing better in both overall sales and in profits.

Answered: 1 week ago

Question

r.uni ACC 114/121 (ACC

Answered: 1 week ago