Theo's has estimated quarterly sales, starting with Quarter 1, of $9,800, $10,700, $12,400, and $14,600.Purchases are equal to 66 percent of the following quarter's sales and are payable in 90 days.Assume there are 30 days in each month.How much will Theo's pay its suppliers in the third quarter?

Question

Quizplus · Accepted Answer

Purchases for the third quarter are 66% of the fourth quarter's sales, which are $14,600. Therefore, purchases for the third quarter are $14,600 * 0.66 = $9,636.

Theo's Has Estimated Quarterly Sales, Starting with Quarter 1, of $9,800