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The Thakor Corporation's purchases from suppliers in a quarter are equal to 75% of the next quarter's forecast sales. The payables period in 45 days.
The Thakor Corporation's purchases from suppliers in a quarter are equal to 75% of the next quarter's forecast sales. The payables period in 45 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $60 per quarter. No capital expenditures are planned.
What are the payments on account for payables period for 45 days and payables period for 30 days? please show work.
Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $1,980 $2,280 $1,980 $1,680Step by Step Solution
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