Question
Gifts For All has projected sales for next year of: Q1 Q2 Q3 Q4 Sales $ 25,200 $ 27,400 $ 33,700 $ 41,700 Purchases are
Gifts For All has projected sales for next year of:
| Q1 | Q2 | Q3 | Q4 | |||||||||
| Sales | $ | 25,200 | $ | 27,400 | $ | 33,700 | $ | 41,700 | ||||
Purchases are equal to 70 percent of next quarter's sales. Each month has 30 days, the accounts receivable period is 41 days, and the accounts payable period is 44 days. How much will the company pay suppliers in the third quarter?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
First we calculate the purchases for each quarter Q1 Purchases 70 x Q2 Sales 70 x 27400 ...
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Step: 2
Step: 3
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
