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Your company has beginning accounts receivable of $500 and an average collection period of 30 days. Cost of inventory is 50% of the next quarter's
Your company has beginning accounts receivable of $500 and an average collection period of 30 days. Cost of inventory is 50% of the next quarter's sales. The firm has beginning payables of $300 and a payables period of 45 days. The company has the following sales forecasts for each quarter this year: Q2 Q1 Q3 Q4 Q1 1,800 1,500 2,100 sales 1,200 1,200 750 900 1,050 600 inventory purchases total cash payments Calculate total cash payments for quarter 4. $825 $675 $900 $1.125 O $975
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