The Bruin Corporation’s purchases from suppliers in a quarter are equal to 70 pe

Question

The Bruin Corporation’s purchases from suppliers in a quarter are equal to 70 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $122 per quarter. No capital expenditures are planned. Projected quarterly sales are:

Calculate Bruin’s cash outlays by completing the following (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)):

The Bruin Corporation’s purchases from suppliers in a quarter are equal to 70 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $122 per quarter. No capital expenditures are planned. Projected quarterly sales are:

Explanation / Answer

Statement showing Cash Outlays Particulars Q1 Q2 Q3 Q4 Next Yr Q1 Sales                 1,290.00               1,440.00                  1,530.00         1,740.00               1,410.00 Purchases =70%of Next Q Sales                 1,008.00               1,071.00                  1,218.00             987.00 Payment of Accounts after 60 Days (a)                  1,008.00         1,071.00 Wages, taxes, other expenses @25% of sales (b)                     322.50                  360.00                      382.50             435.00 Long-term financing expenses (interest and dividends) ©                     122.00                  122.00                      122.00             122.00 Total                     444.50                  482.00                  1,512.50         1,628.00 Assumed sales are at end of quarter Note : Since Payment period is 60 days. It is assumed that payment is on 60th day

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.