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

Question

Brunell Products has projected the following sales for the coming year:
  

  
Sales in the year following this one are projected to be 20 percent greater in each quarter.
  
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately.
  
a. What is the payables period in this case? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
Payables period            
  
What are the payments to suppliers each quarter? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
  

  
b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 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.)
  

c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 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.)
  

Q1 Q2 Q3 Q4 Sales $390 $480 $630 $570 Brunell Products has projected the following sales for the coming year 01 $390 02 03 $630 04 S570 Sales Sales in the year following this one are projected to be 20 percent greater in each quarter Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately a. What is the payables period in this case? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Payables period What are the payments to suppliers each quarter? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Q1 03 Q4 Payment of accounts b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume a 90-day payables period. (Do no 32.16.) Q1 Q3 Q4 Payment of accounts c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume a 60-day payables period. (Do not 32.16.) Q1 02 Q3 04 Payment of accounts

Explanation / Answer

A

What is the payable period in this case?

Payable period is Zero

Q1

Q2

Q3

Q4

Payment of accounts

$390

$480

$630

$570

Quarterly payments = (0.30) Next period sales

For Payment of accounts

Sales

$144.0

$189.0

$171.0

$140.40

(390*120%)

b

Q1

Q2

Q3

Q4

Payment of accounts

$390

$480

$630

$570

0.3

0.3

0.3

0.3

$117

$144

$189

$171

c

Q1

Q2

Q3

Q4

Payment of accounts

$390

$480

$630

$570

$126

$159

$183

$160.80

Q1

2/3*(0.30)390+1/3*(0.30)(480)

Q2

2/3*(0.3)480+1/3(0.30)(630)

Q3

2/3*(0.30)630+1/3(0.30)(570)

Q4

2/3*(0.30)570+1/3(0.30)(468)

A

What is the payable period in this case?

Payable period is Zero

Q1

Q2

Q3

Q4

Payment of accounts

$390

$480

$630

$570

Quarterly payments = (0.30) Next period sales

For Payment of accounts

Sales

$144.0

$189.0

$171.0

$140.40

(390*120%)

b

Q1

Q2

Q3

Q4

Payment of accounts

$390

$480

$630

$570

0.3

0.3

0.3

0.3

$117

$144

$189

$171

c

Q1

Q2

Q3

Q4

Payment of accounts

$390

$480

$630

$570

$126

$159

$183

$160.80

Q1

2/3*(0.30)390+1/3*(0.30)(480)

Q2

2/3*(0.3)480+1/3(0.30)(630)

Q3

2/3*(0.30)630+1/3(0.30)(570)

Q4

2/3*(0.30)570+1/3(0.30)(468)

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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