Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Torrey Pine Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is

image text in transcribed

The Torrey Pine Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 15 percent of sales, and Interest and dividends are $95 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here: Q1 Q2 Q3 Q4 Sales $1,920 $2,220 $1,920 $1,620 Sales for the first quarter of the following year are projected at $2,250. Calculate the company's cash outlays by completing the following: (Do not round Interm calculations and round your answers to 2 decimal places, e.g., 32.16.) > Answer is complete but not entirely correct. Q1 - Q2 $ 1,665.00 $ 1.440.00 $ 1,215.00 s 288.00 333.00 288.00 95.00 95.00 95.00 $ 2,048.00 s 1 ,868.00 $ 1,598.00 $ Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total 1 ,887.50 % 243.00 95.00 2,025.50 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Derivative Products And Pricing The Das Swaps And Financial Derivatives Library

Authors: Satyajit Das

1st Edition

0470821647, 9780470821640

More Books

Students also viewed these Finance questions

Question

Let X be iid r.v.'s with u = EX1 and E X1P Answered: 1 week ago

Answered: 1 week ago