The Sepulcro Corporation’s purchases from suppliers in a quarter are equal to 60

Question

The Sepulcro Corporation’s purchases from suppliers in a quarter are equal to 60 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 40 percent of sales, and interest and dividends are $119 per quarter. No capital expenditures are planned. Projected quarterly sales are:
  

  
Sales for the first quarter of the following year are projected at $1,770.
  
Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Q1 Q2 Q3 Q4 SALES 1650 1800 1860 2100 Q1 Q2 Q3 Q4 PAYMENT OF ACCOUNTS 1080 1116 1260 1062 WAGES, TAXES, OTHER EXPENSES 660 720 744 840 LONG TERM FINANCING EXPENSES 119 119 119 119 TOTAL 1859 1955 2123 2021

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