Question
Rossdale Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 840 $ 920 $ 880 $ 980 Sales
| Rossdale Products has projected the following sales for the coming year: |
| Q1 | Q2 | Q3 | Q4 | |||||||||
| Sales | $ | 840 | $ | 920 | $ | 880 | $ | 980 | ||||
| Sales in the year following this one are projected to be 10 percent greater in each quarter. |
| a. | Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| b. | Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| c. | Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
