Question
Sexton Corporation has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $ 780 $ 900 $ 1,020 $ 990 Sales
Sexton Corporation has projected the following sales for the coming year:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Sales | $ 780 | $ 900 | $ 1,020 | $ 990 |
Sales in the year following this one are projected to be 25 percent greater in each quarter.
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume that the company pays immediately.
What is the payables period in this case?
Note: Do not round intermediate calculations and round your answer to the nearest whole
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Financial Accounting And Reporting For Non Accounting Students How To Interpret Financial Statements And Appraise Company Performance
Authors: Stephen Frost
1st Edition
1398614084, 978-1398614086
