Question
Wentworth Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $780 $900 $1,020 $990 Sales in the year following
Wentworth Products 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. | ||||||
a. What is the payables period in this case? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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What are the payments to suppliers each quarter? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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b. 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 a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places e.g., 32.16.)
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c. 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 a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places e.g., 32.16.)
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