Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sexton Corporation has projected the following sales for the coming year: Sales Q1 $ 570 Q2 Q3 Q4 $ 660 $ 810 $ 750
Sexton Corporation has projected the following sales for the coming year: Sales Q1 $ 570 Q2 Q3 Q4 $ 660 $ 810 $ 750 Sales in the year following this one are projected to be 20 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 20 percent of projected sales for the next quarter. Assume that the company pays immediately. a. What is the payables period in this case? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Payables period What are the payments to suppliers each quarter? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Q1 Payment of accounts Q2 Q3 Q4 b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 20 percent of projected sales for the next quarter. Assume a 90-day payables period. Note: Do not round intermediate calculations and round your answers to 2 decimal places e.g., 32.16. Q1 Payment of accounts Q2 Q3 Q4 c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 20 percent of projected sales for the next quarter. Assume a 60-day payables period. Note: Do not round intermediate calculations and round your answers to 2 decimal places e.g., 32.16. Q1 Payment of accounts Q2 Q3 Q4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started