ron Man Products has projected the following sales for the coming year: Sales in

Question

ron Man Products has projected the following sales for the coming year:

Sales in the year following this one are projected to be 15 percent greater in each quarter.

Calculate payments to suppliers assuming that Iron Man places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that Iron Man pays immediately. (Round your answers to 2 decimal places. (e.g., 32.16))

Calculate payment to suppliers assuming a 90-day payables period.

Calculate payment to suppliers assuming a 60-day payables period. (Round your answers to 2 decimal places. (e.g., 32.16))

ron Man Products has projected the following sales for the coming year:

Explanation / Answer

a)

Payment of accounts = 0.3 * next quater sales

b)

payment of accounts = 0.3 * current sales

c)

payment of accounts = 0.3*[ ((2/3)*current sales) + ( (1/3) * next quater sales)]

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