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 25 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 25 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 25 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).)

Explanation / Answer

Q1 Q2 Q3 Q4 Q5 Sales             840             960          1,080          1,050          1,155 Payment current year + 25% of next quarter    1,080.00    1,230.00    1,342.50    1,338.75 90 days payable period    1,080.00    1,230.00    1,342.50 60 days payable period    1,080.00    1,230.00    1,342.50    1,338.75

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