The Candy Cane Store has the following estimated sales. Purchases are equal to 64 percent of the following quarter's sales.Assume each month has 30 days,the accounts receivable period is 30 days and the accounts payable period is 45 days.How much will the firm pay its suppliers in the third quarter?

Question

The Candy Cane Store has the following estimated sales.  Purchases are equal to 64 percent of the following quarter's sales.Assume each month has 30 days,the accounts receivable period is 30 days and the accounts payable period is 45 days.How much will the firm pay its suppliers in the third quarter?

Quizplus · Accepted Answer

Q₃ payments = 45/90(0.64 × $29,600) + 45/90(0.64 × $38,900) = $21,920

The Candy Cane Store Has the Following Estimated Sales