The Thunder Dan's Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 16 percent of sales, and interest and dividends are $60 per quarter. No capital expenditures are planned. Sales for the first quarter of the following year are projected at $720. The projected quarterly sales are: What is the amount of the total disbursements for Quarter 2?

Question

The Thunder Dan's Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 16 percent of sales, and interest and dividends are $60 per quarter. No capital expenditures are planned. Sales for the first quarter of the following year are projected at $720. The projected quarterly sales are:  What is the amount of the total disbursements for Quarter 2?

Quizplus · Accepted Answer

Payment of accounts = (60/90) F1F1F1S1F1F1F10 0.65 F1F1F1S1F1F1F10 $660 + (30/90) F1F1F1S1F1F1F10 0.65 F1F1F1S1F1F1F10 $590 = $413.83Total disbursements = $413.83 + (0.16 F1F1F1S1F1F1F10 $660) + $60 = $579.43

The Thunder Dan's Corporation's Purchases from Suppliers in a Quarter