The payments to supplier. Payable Period: The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

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Answer 1

Question

Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

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Sexton Corporation has projected the following sales for the coming year: Sales Q1 $ 300 Q2 Q3 Q4 $ 390 $ 540 $ 480 Sales in the year following this one are projected to be 25 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume that the company pays Immediately. 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. Q1 Payment of accounts Q2 Q3 Q4 b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period. Note: Do not round Intermediate calculations and round…

Jane Doe plans to make twelve end-of-month payments of $18,000 each on a short term investment account. The account earns a monthly interest rate of 2.5%. a. What is the present worth (i.e., Po) of these payments? b. Repeat Part (a) but assuming that they are beginning-of-month payments. a. The present equivalent of the payments is $ nearest dollar.) b. The present equivalent of the payments is $ nearest dollar.) (Round to the (Round to the

Answer 2

Question

Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

Expert Solution & Answer

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Answer 3

Question

Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

Expert Solution & Answer

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See solution

Answer 5

Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

Answer 6

Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

Answer 7

Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

Answer 8

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

Answer 9

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

Answer 10

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

Answer 11

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 26 - Prob. 1CQ Ch. 26 - Prob. 2CQ Ch. 26 - Prob. 3CQ Ch. 26 - Cost of Current Assets Grohl Manufacturing, Inc.,...Ch. 26 - Prob. 5CQ Ch. 26 - Shortage Costs What are the costs of shortages?...Ch. 26 - Prob. 7CQ Ch. 26 - Prob. 8CQ Ch. 26 - Prob. 9CQ Ch. 26 - Prob. 10CQ

The payments to supplier. Payable Period: The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

Solution Summary: The author explains the payback period, which starts when the company purchases raw material from supplier and pays the cash back to the supplier.

Concept explainers

Videos

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

To compute: The payments to supplier if payback period is 90 days.

To compute: The payments to supplier if payback period is 60 days.

Want to see the full answer?

Chapter 26 Solutions

The payments to supplier. Payable Period: The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

Solution Summary: The author explains the payback period, which starts when the company purchases raw material from supplier and pays the cash back to the supplier.

Concept explainers

Videos

To compute: The payments to supplier. Payable Period: The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

To compute: The payments to supplier if payback period is 90 days.

To compute: The payments to supplier if payback period is 60 days.

Want to see the full answer?

Chapter 26 Solutions

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.