Gifts For All has projected sales for next year of:SalesQ1Q2Q3Q4$ 25,400 $ 27,600 $ 34,000 $ 41,900Purchases are equal to 63 percent of next quarter's sales. Each month has30 days, the accounts receivable period is 40 days, and the accountspayable period is 43 days. How much will the company pay suppliers in thethird quarter? $19,494$24,185$22,846$24,019$23,798

Payment to suppliers for Q2 = Q2 sales* purchase % of next quarter sales* accounts Payable period…

Answered: Gifts For All has projected sales for…

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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Receivables Investment Snider Industries sells on terms of 2/10, net 35. Total sales for the year are $1,400,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 40 days after their purchases. Assume a 365-day year. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 35th day? Do not round intermediate calculations. Round your answer to the nearest dollar. $
The MacDonald Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $124 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $1,230 $1,380 $1,470 $1,680 Sales for the first quarter of the following year are projected at $1,350. Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Vijay
The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 60 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $114 per quarter. No capital expenditures are planned. Projected quarterly sales are: Sales Q1 $ 1,500 Q2 Q3 04 $ 1,650 $ 1,710 $ 1,950 Sales for the first quarter of the following year are projected at $1,620. Calculate the company's cash outlays by completing the following: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Check my work Q4
You are considering an investment in a Third World bank account that pays a nominal annual rate of 18%, compounded monthly. If you invest $5,200 at the beginning of each month, how many months would it take for your account to grow to $500,000? Round fractional months up. a. 38 months b. 60 months c. 46 months d. 17 months e. 27 months
Dynamic Futon forecasts the following purchases from suppliers: Jan. Feb. Mar. Apr. May Jun. Value of goods ($ millions) 33 29 26 23 21 21 a. Fifty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of one month. If Dynamic Futon starts the year with payables of $23 million, what is the forecasted level of payables for each month? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) b. Suppose that from the start of the year the company stretches payables by paying 50% after one month and 30% after two months. (The remainder continue to be paid cash on delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment. (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
A loan of $3,000 for a new, high-end laptop computer is to be repaid in 15 end-of-month payments (starting one month from now). The monthly payments are determined as follows. Loan principal Interest for 15 months at 1.5% per month Loan application fee Total Monthly payment = $3,824.25/15 = $254.95 What nominal and effective interest rates per year are actually being paid? Hint: Draw a cash-flow diagram from the perspective of the lender. O C. $3,000 0 $3,000 1 0 2 1 7-- 3 $254.95. HI 2 3 $254.95_ 14 15 15 16 Q Q Q Q C O D. $3,000 $3,000 1 $3,000 675.00 149.25 $3,824.25 1 2 3 2 3 $254.95. 14 $254.95__ 15 15 16 Q Q Q
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Receivables Investment Snider Industries sells on terms of 2/10, net 25. Total sales for the year are $500,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 30 days after their purchases. Assume a 365-day year. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 25th day? Do not round intermediate calculations. Round your answer to the nearest dollar. $

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