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

It has been assumed that purchases are made in first month of Quarter and hence 60 days payment period will fall in same quarrter.

Q1 Q2 Q3 Q4 Payment of Account $1,008.00 $1,071.00 $1,218.00 $987.00 Wages and Tax $322.50 $360.00 $382.50 $435.00 Interest and Dividend $122.00 $122.00 $122.00 $122.00 Total $1,452.50 $1,553.00 $1,722.50 $1,544.00

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