Joseph Schmidt and Co.has the following estimated sales. Purchases are equal to 64 percent of the following quarter's sales.What is the cash outlay for accounts payable for quarter 3 if the firm has a 30-day accounts payable period? Assume each month has 30 days.

Question

Joseph Schmidt and Co.has the following estimated sales.  Purchases are equal to 64 percent of the following quarter's sales.What is the cash outlay for accounts payable for quarter 3 if the firm has a 30-day accounts payable period? Assume each month has 30 days.

Quizplus · Accepted Answer

Q₃ payments = 1/3(0.64 ×$17,200) + 2/3(0.64 × $16,100) = $10,539