Broad Cloth, Inc.'s average collection period is 15 days. The vice-president of marketing has projected credit sales of $2. million for October, $2.5 million for November and $3 million for December. Purchases equal 60% of sales and are made one month in advance of budgeted sales. Payments are made 1 month after the date of purchase. Compute payments for purchases for the months of November and December.

Question

Quizplus · Accepted Answer

The Answer of Broad Cloth, Inc.'s average collection period is 15 days. The vice-president of marketing has projected credit sales of $2. million for October, $2.5 million for November and $3 million for December. Purchases equal 60% of sales and are made one month in advance of budgeted sales. Payments are made 1 month after the date of purchase. Compute payments for purchases for the months of November and December.