The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 70 percent of the next quarter's forecasted sales.The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $90 perquarter. No capital expenditures are planned.Projected quarterly sales are:0102Sales $ 2,340 $ 2,640Sales for the first quarter of the following year are projected at $2,670. Calculate the company's cash outlays by completing thefollowing:Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.Payment of accountsWages, taxes, other expensesLong-term financing expenses(interest and dividends)Total04$ 2,040Q1Q2Q3Q4

The "cash outlay" means the actual spending or payment of money for a certain goal in business. It…

Answered: The Bandon Pine Corporation's purchases…

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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