Limitless Styles Has a 45 Day Accounts Payable Period

Limitless Styles has a 45 day accounts payable period. The firm has expected sales of $900, $1,200, $1,900, and $2,600, respectively, by quarter for the next calendar year. The cost of goods
Sold for a quarter is equal to 70% of the next quarter sales. The firm has a beginning payables
Balance of $600 as of quarter one. What is the amount of the projected cash disbursements for
Accounts payable for Quarter 3 of the next year? Assume that a year has 360 days.

A) $950
B) $1,085
C) $1,195
D) $1,575
E) $1,820