EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
11th Edition
ISBN: 8220102798878
Author: Ross
Publisher: YUZU
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Chapter 26, Problem 8QP

Calculating Payments The Thakor Corporation’s purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $73 per quarter. No capital expenditures are planned.

Here are the projected quarterly sales:

Chapter 26, Problem 8QP, Calculating Payments The Thakor Corporations purchases from suppliers in a quarter are equal to 75 , example  1

Sales for the first quarter of the following year are projected at $1,645. Calculate the company’s cash outlays by completing the following:

Chapter 26, Problem 8QP, Calculating Payments The Thakor Corporations purchases from suppliers in a quarter are equal to 75 , example  2

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