Workout Together has projected the following sales for the coming year: Sales in the year following this one are projected to be 18 percent greater in each quarter. Assume the firm places orders during each quarter equal to 29 percent of projected sales for the next quarter. How much will the firm pay to its suppliers in Quarter 2 if its accounts payable period is 60 days?

Question

Workout Together has projected the following sales for the coming year:  Sales in the year following this one are projected to be 18 percent greater in each quarter. Assume the firm places orders during each quarter equal to 29 percent of projected sales for the next quarter. How much will the firm pay to its suppliers in Quarter 2 if its accounts payable period is 60 days?

Quizplus · Accepted Answer

Q2 payments = (60/90) F1F1F1S1F1F1F10 0.29 F1F1F1S1F1F1F10 $800 + (30/90) F1F1F1S1F1F1F10 0.29 F1F1F1S1F1F1F10 $900 = $241.67

Workout Together Has Projected the Following Sales for the Coming