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Birds Unlimited Has a 45 Day Accounts Payable Period

Question 62

Multiple Choice

Birds Unlimited has a 45 day accounts payable period.The firm has expected sales for Quarters 1 through 4 of next year of $1,800,$2,100,$2,400,and $2,800,respectively.The cost of goods sold for a quarter is equal to 65 percent of the next quarter's sales.What is the amount of the projected cash disbursements for accounts payable for Quarter 2? Assume a 360 day year.


A) $1,125.00
B) $1,462.50
C) $1,690.00
D) $2,125.50
E) $2,250.00

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