Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Wright Inc. has forecasted the following quarterly sales amounts for the upcoming year: Q1 = $726; Q2 = $724; Q3 = $879; Q4 = $823

Wright Inc. has forecasted the following quarterly sales amounts for the upcoming year:

Q1 = $726; Q2 = $724; Q3 = $879; Q4 = $823

Wrights purchases from suppliers in a quarter are equal to 70% of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 17% of sales, and interest and dividends are $62 per quarter. No capital expenditures are planned.

Sales in Q1 of the following year are expected to be 942. What are Wrights cash disbursements in the first quarter? (Round answer to 0 decimal places. Do not round intermediate calculations)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions