Calculate payments to suppliers assuming that the company places orders during e

Question

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume that the company pays immediately.

What is the payables period in this case?

What are the payments to suppliers each quarter? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)):

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 60-day payables period. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Grohl Products has projected the following sales for the coming year:

Explanation / Answer

What is the payables period in this case?

The payables period is zero since the company pays immediatley

What are the payments to suppliers each quarter

Sales in the year following this one are projected to be 25% greater in each quarter.

Therefore, Q1 sales for the next year will be $780(1.25) = $975

. The payment in each period is 35 percent of next period's sales, so:

Quartely payment = 0.35*(next period sales)

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period

Sales made in Q4 of previous year = Q1 Sales of this year ($780) / 1.25 = $624Since the payment cycle is 90 days from purchase date it means last quarter purchase payment is made in the subsequent quarter

Sales = Q1 =624 , Q2 = 780, Q3 = 900, Q4 =1,020

Quarterly payment = 0.35*(next period sales)

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 60-day payables period

What is the payables period in this case?

The payables period is zero since the company pays immediatley

What are the payments to suppliers each quarter

Sales in the year following this one are projected to be 25% greater in each quarter.

Therefore, Q1 sales for the next year will be $780(1.25) = $975

. The payment in each period is 35 percent of next period's sales, so:

Quartely payment = 0.35*(next period sales)

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period

Since the payable period is 60 days, the payment in each quarter will be 2/3 of last quarter's order+1/3 of this quarter;s order

Quarterly payments= 2/3*.35*current sales+1/3*.35*Next period sales

(a)

What is the payables period in this case?

The payables period is zero since the company pays immediatley

What are the payments to suppliers each quarter

Sales in the year following this one are projected to be 25% greater in each quarter.

Therefore, Q1 sales for the next year will be $780(1.25) = $975

. The payment in each period is 35 percent of next period's sales, so:

Quartely payment = 0.35*(next period sales)

Q1 Q2 Q3 Q4 Payment of accounts 900*.35= $315 1,020*.35=357 990*.35= 346.50 975*.35= 341.25

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period

Sales made in Q4 of previous year = Q1 Sales of this year ($780) / 1.25 = $624Since the payment cycle is 90 days from purchase date it means last quarter purchase payment is made in the subsequent quarter

Sales = Q1 =624 , Q2 = 780, Q3 = 900, Q4 =1,020

Quarterly payment = 0.35*(next period sales)

Q1 Q2 Q3 Q4 Payment of accounts 780*.35= $273 900*.35 = 315 1,020,*.35= 357 975*.35= 341.25

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 60-day payables period

What is the payables period in this case?

The payables period is zero since the company pays immediatley

What are the payments to suppliers each quarter

Sales in the year following this one are projected to be 25% greater in each quarter.

Therefore, Q1 sales for the next year will be $780(1.25) = $975

. The payment in each period is 35 percent of next period's sales, so:

Quartely payment = 0.35*(next period sales)

Q1 Q2 Q3 Q4 Payment of accounts 900*.35= $315 1,020*.35=357 990*.35= 346.50 975*.35= 341.25

Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period

Since the payable period is 60 days, the payment in each quarter will be 2/3 of last quarter's order+1/3 of this quarter;s order

Quarterly payments= 2/3*.35*current sales+1/3*.35*Next period sales

Q1 Q2 Q3 Q4 Payment of accounts 287 329 350.50 344.75

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