The Torrey Pine Corporations purchases from suppliers in a quarter are equal to 75 percent of the next quarters forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $90 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here:

	Q1	Q2	Q3	Q4
Sales	$1,930	$2,275	$1,810	$1,520
Payment of Accounts	$	$	$	$
Wages, taxes, other expenses	386	455	362	304
Long-term financing expenses (interest and dividends)	90	90	90	90
Total	$	$	$	$

Please explain. It is not simple 75% of the following quarter's sales. I tried that...