Q1 Q2 Q3 Q4 Sales $960 $1,040 $1,000 $1,100 Sales in the year following this one are projected to be 10 percent greater in each quarter. a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. What is the payables period in this case? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. b. C. Answer is complete but not entirely correct. Q3 330.00 $ Q1 $ 312.00 $ $ 288.00 $ 538.67 X $ 300.00 $ 566.67 X $ Payment of accounts Payment of accounts Payment of accounts $ Q2 300.00 $ 312.00 $ 541.33 $ Q4 363.00 330.00 623.33

Q1 Q2 Q3 Q4 Sales $960 $1,040 $1,000 $1,100 Sales in the year following this one are projected to be 10 percent greater in each quarter. a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. What is the payables period in this case? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate payments to suppliers assuming a 90-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Calculate payments to suppliers assuming a 60-day payables period. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. b. C. Answer is complete but not entirely correct. Q3 330.00 $ Q1 $ 312.00 $ $ 288.00 $ 538.67 X $ 300.00 $ 566.67 X $ Payment of accounts Payment of accounts Payment of accounts $ Q2 300.00 $ 312.00 $ 541.33 $ Q4 363.00 330.00 623.33

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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