In: Finance
answer all parts please
Brunell Products has projected the following sales for the
coming year:
Q1 | Q2 | Q3 | Q4 | |
Sales | $360 | $450 | $600 | $540 |
Sales in the year following this one are projected to be 10 percent
greater in each quarter.
Calculate payments to suppliers assuming that the company places
orders during each quarter equal to 25 percent of projected sales
for the next quarter. Assume that the company pays
immediately.
a. What is the payables period in this case?
(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? (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
Q1 | Q2 | Q3 | Q4 | |
Payment of accounts | $ | $ | $ | $ |
? ? ? ? |
??
b. Calculate payments to suppliers assuming that
the company places orders during each quarter equal to 25 percent
of projected sales for the next quarter. Assume a 90-day payables
period. (Do not round intermediate calculations. Round your
answers to 2 decimal places e.g., 32.16.)
Q1 | Q2 | Q3 | Q4 | |
Payment of accounts | $ | $ | $ | $ |
c. Calculate payments to suppliers assuming that
the company places orders during each quarter equal to 25 percent
of projected sales for the next quarter. Assume a 60-day payables
period. (Do not round intermediate calculations. Round your
answers to 2 decimal places e.g., 32.16.)
Q1 | Q2 | Q3 | Q4 | |
Payment of accounts | $ | $ | $ | $ |