Sexton Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $920 $1,000 $960 $1,060 Sales in the year following this one are projected to be 15 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. (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. Payment of accounts b. Payment of accounts c. Payment of accounts Q1 Q2 Q3 Q4

Sexton Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $920 $1,000 $960 $1,060 Sales in the year following this one are projected to be 15 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. (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. Payment of accounts b. Payment of accounts c. Payment of accounts Q1 Q2 Q3 Q4

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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Question

Sexton Products has projected the following sales for the coming year:
Q1
Q2
Q3
Q4
Sales $920 $1,000 $960 $1,060
Sales in the year following this one are projected to be 15 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. (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. Payment of accounts
b. Payment of accounts
c. Payment of accounts
Q1
Q2
Q3
Q4

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