Problem 16-8 Calculating Payments [LO 3] Sexton Corporation has projected the following sales for the coming year: Q2 03 04 $ 540 $ 690 $ 630 Sales in the year following this one are projected to be 20 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 20 percent of projected sales for the next quarter. Assume that the company pays immediately. Sales 01 $450 a. What is the payables period in this case? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Payables period What are the payments to suppliers each quarter? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Q1 Q2 Q3 04
Problem 16-8 Calculating Payments [LO 3] Sexton Corporation has projected the following sales for the coming year: Q2 03 04 $ 540 $ 690 $ 630 Sales in the year following this one are projected to be 20 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 20 percent of projected sales for the next quarter. Assume that the company pays immediately. Sales 01 $450 a. What is the payables period in this case? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Payables period What are the payments to suppliers each quarter? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Q1 Q2 Q3 04
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Problem 16-8 Calculating Payments [LO 3]
Sexton Corporation has projected the following sales for the coming year:
Q2
03
04
$ 540
$ 690
$ 630
Sales in the year following this one are projected to be 20 percent greater in each quarter.
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 20 percent of projected sales
for the next quarter. Assume that the company pays immediately.
Sales
01
$450
a. What is the payables period in this case?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Payables period
What are the payments to suppliers each quarter?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Payment of accounts
Q1
Q2
Q3
04](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4daeda3b-5278-4fa7-b2ce-c352b31ca222%2Fe447c633-647c-4734-8d5c-47b3aa071c01%2F1x2u5ab5_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 16-8 Calculating Payments [LO 3]
Sexton Corporation has projected the following sales for the coming year:
Q2
03
04
$ 540
$ 690
$ 630
Sales in the year following this one are projected to be 20 percent greater in each quarter.
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 20 percent of projected sales
for the next quarter. Assume that the company pays immediately.
Sales
01
$450
a. What is the payables period in this case?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Payables period
What are the payments to suppliers each quarter?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Payment of accounts
Q1
Q2
Q3
04
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