Question
King James Sporting Goods started Quarter One (Q1) of 2018 with an Accounts Payables balance of $555,000. Each quarter they purchase Inventory worth 60% of
King James Sporting Goods started Quarter One (Q1) of 2018 with an Accounts Payables balance of $555,000. Each quarter they purchase Inventory worth 60% of their next quarters sales forecast. If Q2 sales are projected to be $2,300,000 and they have an Average Payables Period of 60 days, what is the cash outflow in Accounts Payable during Q1 of 2018?
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Principles Of Managerial Finance Brief
Authors: Chad J. Zutter, Scott B. Smart
8th Global Edition
1292267143, 978-1292267142
