Question

The Sepulcro Corporation’s purchases from suppliers in a quarter are equal to 65 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 $118 per quarter. No capital expenditures are planned. Projected quarterly sales are:
  

	Q1	Q2	Q3	Q4
Sales	$1,620	$1,770	$1,830	$2,070

  
Sales for the first quarter of the following year are projected at $1,740.
  
Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Q1	Q2	Q3	Q4
Payment of accounts	$	$	$	$
Wages, taxes, other expenses
Long-term financing expenses (interest and dividends)
Total	$	$	$	$

Answer 1

	Q1	Q2	Q3	Q4	Next year Q1
Sales	1620	1770	1830	2070	1740
Payent of accounts payable	1150.5	1189.5	1345.5	1131
Wages, taxes and expenses	324	354	366	414
Interest and dividend	118	118	118	118
Total	1592.5	1661.5	1829.5	1663

Calculations as per formulae below