Question

In: Finance

Wright Inc. has forecasted the following quarterly sales amounts for the upcoming year: Q1 = $748;...

Wright Inc. has forecasted the following quarterly sales amounts for the upcoming year:

Q1 = $748; Q2 = $678; Q3 = $899; Q4 = $789

Wright’s purchases from suppliers in a quarter are equal to 70% of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 17% of sales, and interest and dividends are $62 per quarter. No capital expenditures are planned.

Sales in Q1 of the following year are expected to be 961. What are Wright’s cash disbursements in the fourth quarter? (Round answer to 0 decimal places. Do not round intermediate calculations)

Solutions

Expert Solution

Since the payables period is 60 days, payables in each period = 2/3 of last quarter’s orders, and 1/3 of this quarter’s orders, or 2/3(.75) times current sales + 1/3(.75) next period sales.

Working

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Wright Inc. has forecasted the following quarterly sales amounts for the upcoming year: Q1 = $746;...
Wright Inc. has forecasted the following quarterly sales amounts for the upcoming year: Q1 = $746; Q2 = $686; Q3 = $907; Q4 = $808 Wright’s purchases from suppliers in a quarter are equal to 70% of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 17% of sales, and interest and dividends are $62 per quarter. No capital expenditures are planned. Sales in Q1 of the following year are expected to...
The Jallouk Company has projected the following quarterly sales amounts for the coming year:     Q1...
The Jallouk Company has projected the following quarterly sales amounts for the coming year:     Q1 Q2 Q3 Q4 Sales $450 $510 $570 $720    a. Accounts receivable at the beginning of the year are $240. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)     Q1 Q2 Q3 Q4 Beginning receivables $...
The Jallouk Company has projected the following quarterly sales amounts for the coming year:     Q1...
The Jallouk Company has projected the following quarterly sales amounts for the coming year:     Q1 Q2 Q3 Q4 Sales $450 $510 $570 $720    a. Accounts receivable at the beginning of the year are $240. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)     Q1 Q2 Q3 Q4 Beginning receivables $...
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Q1 Q2...
The Litzenberger Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $ 790 $ 820 $ 900 $ 980 a. Accounts receivable at the beginning of the year are $380. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. A negative answer should be indicated by...
The Geller Company has projected the following quarterly sales amounts for the coming year: Q1 Q2...
The Geller Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4   Sales $420 $480 $540 $690 a. Accounts receivable at the beginning of the year are $270. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)     b. Accounts receivable at the beginning of the year...
The Doak Company has projected the following quarterly sales amounts for the coming year: Q1 Q2...
The Doak Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $3,900 $4,700 $4,300 $3,600 Accounts receivable at the beginning of the year are $1,700. a. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. The company has a 60-day collection period. Calculate cash...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:   Q1   Q2   Q3   Q4   Sales $ 750 $ 780 $ 860 $ 940 a. Accounts receivable at the beginning of the year are $340. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.): Q1 Q2...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:   Q1   Q2   Q3   Q4   Sales $ 710 $ 740 $ 820 $ 900 a. Accounts receivable at the beginning of the year are $290. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.): Q1 Q2...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:   Q1   Q2   Q3   Q4   Sales $ 750 $ 780 $ 860 $ 940 a. Accounts receivable at the beginning of the year are $340. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.): Q1 Q2...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:...
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year:   Q1   Q2   Q3   Q4   Sales $ 780 $ 810 $ 890 $ 970 a. Accounts receivable at the beginning of the year are $370. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places, e.g., 32.16.): Q1 Q2...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT