Intro It is the beginning of January. Actual sales for the previous quarter (Q4) and estimated sales for the next five quarters are as follows (in $ million): Quarter Q4 Q1 Q2 Q3 Q4 Q1 79 63 68 70 94.8 75 Sales Your average collection period (receivables period) 40 days and your average account payable period is 70 days. You expect to always spend 40% of the following quarter's sales on purchases of components from suppliers. Wages and other expenses add up to 35% of each quarter's sales. You have to pay $4 million in interest each quarter, and plan to spend $60 million on new machinery in Q2. You start the year with $3 million in cash. Assume that each quarter has 90 days, sales occur evenly throughout the quarter and all other cash flows occur at the end of the quarter. Part 4 BAttempt 1/10 for 10 pts. Add another worksheet to your spreadsheet and label it "Disbursements." What fraction of each quarter's purchases gets paid during that same quarter? 3+ decimals Submit Part 5 BAttempt 1/10 for 10 pts. What fraction of the previous quarter's purchases ends up as the beginning accounts payable balance in each quarter? 2+ decimals Submit Part 6 Attempt 1/10 for 10 pts. Add some rows to the spreadsheet showing sales (Q1 to Q1), purchases (Q4 to Q4), beginning payable balances and current purchases paid for Q1 to Q4. What is your expected payment for current purchases in (future) Q4 (in $ million)? 1+ decimals Intro It is the beginning of January. Actual sales for the previous quarter (Q4) and estimated sales for the next five quarters are as follows (in $ million): Quarter Q4 Q1 Q2 Q3 Q4 Q1 79 63 68 70 94.8 75 Sales Your average collection period (receivables period) 40 days and your average account payable period is 70 days. You expect to always spend 40% of the following quarter's sales on purchases of components from suppliers. Wages and other expenses add up to 35% of each quarter's sales. You have to pay $4 million in interest each quarter, and plan to spend $60 million on new machinery in Q2. You start the year with $3 million in cash. Assume that each quarter has 90 days, sales occur evenly throughout the quarter and all other cash flows occur at the end of the quarter. Part 4 BAttempt 1/10 for 10 pts. Add another worksheet to your spreadsheet and label it "Disbursements." What fraction of each quarter's purchases gets paid during that same quarter? 3+ decimals Submit Part 5 BAttempt 1/10 for 10 pts. What fraction of the previous quarter's purchases ends up as the beginning accounts payable balance in each quarter? 2+ decimals Submit Part 6 Attempt 1/10 for 10 pts. Add some rows to the spreadsheet showing sales (Q1 to Q1), purchases (Q4 to Q4), beginning payable balances and current purchases paid for Q1 to Q4. What is your expected payment for current purchases in (future) Q4 (in $ million)? 1+ decimals
