Input Area:

Purchases (% of sales)

65%

Projected sales Q(1) next year

$ 1,500

Expenses (% of sales)

25%

Payables period

30

days

Interest & dividends per Q

$ 68

Q1

Q2

Q3

Q4

Sales

$ 1,300

$ 1,400

$ 1,400

$ 1,200

Output Area:

With a payables period of

30

Q1

Q2

Q3

Q4

Payment of accounts

Wages, taxes, other expenses

Long-term financing expenses

Total

1. King Fisher Aviation purchases from suppliers in a quarter are equal to 65% of the next quarter's forecast sales. The payables period is 30 days. Wages, taxes, and other expenses are 25% of sales, and interest and dividends are $68 per quarter.

Projected quarterly sales are as follows.

Quarter 1 $1,300

Quarter 2 $1,400

Quarter 3 $1,400

Quarter 4 $1,200

Sales for the first quarter of the next year are projected to be $1,500. Calculate the company's cash outlays, by completing the following for each of the four quarters.

Payment of accounts

Wages, taxes, and other expenses

Long-term financing expenses (interest and dividends)

Total

Quarter 1 $978

Quarter 2 $1303

Quarter 3 $1198

Quarter 4 $1393