The Torrey Pine Corporation\'s purchases from suppliers in a quarter are equal t

Question

The Torrey Pine Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $90 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here: Sales for the first quarter of the following year are projected at $2,150. Calculate the company's cash outlays by completing the following (Round your answers to 2 decimal places, (e.g., 32.16))

Explanation / Answer

Q1 Q2 Q3 Q4 Q1 Sales          1,930          2,275          1,810          1,520          2,150 Purchases          1,706          1,358          1,140          1,613                 -   Payment period is 60 days (Payment for the current quarter would be made in next quarter) Payment of accounts          1,706          1,358          1,140 Wages, taxes and other expenses ( 20% of sales)             386             455             362             304             430 Interest and dividends                90                90                90                90 Total             476          2,251          1,810          1,534

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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