Greenbriar Grain and Feed has the following estimated sales. Purchases are equal to 75 percent of the following quarter's sales.The accounts receivable period is 30 days and the accounts payable period is 60 days.Assume there are 30 days in each month.How much will the firm owe its suppliers at the end of quarter 2?

Question

Greenbriar Grain and Feed has the following estimated sales.  Purchases are equal to 75 percent of the following quarter's sales.The accounts receivable period is 30 days and the accounts payable period is 60 days.Assume there are 30 days in each month.How much will the firm owe its suppliers at the end of quarter 2?

Quizplus · Accepted Answer

Accounts payable balance Q₂ = 60/90(0.75 × 8,710) = $4,355

Greenbriar Grain and Feed Has the Following Estimated Sales