Question

In: Finance

The Sepulcro Corporation’s purchases from suppliers in a quarter are equal to 65 percent of the...

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 $ $ $ $

Solutions

Expert Solution

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


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