Question

Please fill in payment of account and total for Q1.

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 $113 per quarter. No capital expenditures are planned. Projected quarterly sales are:
  

	Q1	Q2	Q3	Q4
Sales	$1,470	$1,620	$1,680	$1,920

  
Sales for the first quarter of the following year are projected at $1,590.
  
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	$	1066$	1144$	1176.50$
Wages, taxes, other expenses	294	324	336	384
Long-term financing expenses (interest and dividends)	113	113	113	113
Total	$	1503$	1593$	1673.50$

Answer 1

Calculate the company’s cash outlays
	Q1	Q2	Q3	Q4
Payment of accounts (purchases)	$988.00	$1,066.00	$1,144.00	$1,176.50
Wages, taxes, other expenses (20% of sales)	$294.00	$324.00	$336.00	$384.00
Long-term financing expenses (interest and dividends)	$113.00	$113.00	$113.00	$113.00
Total	$1,395.00	$1,503.00	$1,593.00	$1,673.50
Working
Calculation of payments to suppliers
	Previous Year Last Quarter	Q1	Q2	Q3	Q4	Next Year First Quarter
Sales		$1,470.00	$1,620.00	$1,680.00	$1,920.00	$1,590.00
Purchases (65% of next quarter’s forecast sales)	$955.50	$1,053.00	$1,092.00	$1,248.00	$1,033.50
Payments
2/3 rd of Previous Quarter Purchases		$637.00	$702.00	$728.00	$832.00
1/3 rd of Current Quarter Purchases		$351.00	$364.00	$416.00	$344.50
Total Payments to Suppliers		$988.00	$1,066.00	$1,144.00	$1,176.50