Sexton Corporation has projected the following sales for the coming year: Sales Q1 $ 300 Q2 Q3 Q4 $ 390 $ 540 $ 480 Sales in the year following this one are projected to be 25 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume that the company pays Immediately. a. What is the payables period in this case? Note: 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? Note: Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Q1 Payment of accounts Q2 Q3 Q4 b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period. Note: Do not round Intermediate calculations and round your answers to 2 decimal places e.g., 32.16. Q1 Payment of accounts Q2 Q3 Q4 c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 60-day payables period. Note: Do not round Intermediate calculations and round your answers to 2 decimal places e.g., 32.16.
Sexton Corporation has projected the following sales for the coming year: Sales Q1 $ 300 Q2 Q3 Q4 $ 390 $ 540 $ 480 Sales in the year following this one are projected to be 25 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume that the company pays Immediately. a. What is the payables period in this case? Note: 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? Note: Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Q1 Payment of accounts Q2 Q3 Q4 b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period. Note: Do not round Intermediate calculations and round your answers to 2 decimal places e.g., 32.16. Q1 Payment of accounts Q2 Q3 Q4 c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 60-day payables period. Note: Do not round Intermediate calculations and round your answers to 2 decimal places e.g., 32.16.
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 11P
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Question
Transcribed Image Text:Sexton Corporation has projected the following sales for the coming year:
Sales
Q1
$ 300
Q2
Q3
Q4
$ 390
$ 540
$ 480
Sales in the year following this one are projected to be 25 percent greater in each quarter.
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales
for the next quarter. Assume that the company pays Immediately.
a. What is the payables period in this case?
Note: 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?
Note: Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
Q1
Payment of accounts
Q2
Q3
Q4
b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected
sales for the next quarter. Assume a 90-day payables period.
Note: Do not round Intermediate calculations and round your answers to 2 decimal places e.g., 32.16.
Q1
Payment of accounts
Q2
Q3
Q4
c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected
sales for the next quarter. Assume a 60-day payables period.
Note: Do not round Intermediate calculations and round your answers to 2 decimal places e.g., 32.16.
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