Iron Man Products has projected the following sales for the coming year:
Q1 Q2 Q3 Q4 Sales $ 890 $ 970 $ 930 $ 1,030
Sales in the year following this one are projected to be 10 percent greater in each quarter.
a. 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))
Q1 Q2 Q3 Q4 Payment of accounts $ $ $ $
b. Calculate payment to suppliers assuming a 90-day payables period.
Q1 Q2 Q3 Q4 Payment of accounts $ $ $ $
c. Calculate payment to suppliers assuming a 60-day payables period. (Round your answers to 2 decimal places. (e.g., 32.16))
Q1 Q2 Q3 Q4 Payment of accounts $ $ $ $
| Iron Man Products has projected the following sales for the coming year: |
| Q1 | Q2 | Q3 | Q4 | |||||||||
| Sales | $ | 890 | $ | 970 | $ | 930 | $ | 1,030 | ||||
| Sales in the year following this one are projected to be 10 percent greater in each quarter. |
| a. | 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)) |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
| b. | Calculate payment to suppliers assuming a 90-day payables period. |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
| c. | Calculate payment to suppliers assuming a 60-day payables period. (Round your answers to 2 decimal places. (e.g., 32.16)) |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
Related questions
| The Torrey Pine Corporationâs purchases from suppliers in a quarter are equal to 80 percent of the next quarterâs forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $85 per quarter. No capital expenditures are planned. |
| Projected quarterly sales are shown here: |
| Q1 | Q2 | Q3 | Q4 | |||||||||
| Sales | $ | 1,950 | $ | 2,250 | $ | 1,950 | $ | 1,650 | ||||
| Sales for the first quarter of the following year are projected at $2,280. Calculate the companyâs cash outlays by completing the following (Round your answers to 2 decimal places. (e.g., 32.16)): |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
| Wages, taxes, other expenses | ||||
| Long-term financing expenses (interest and dividends) | ||||
| Total | $ | $ | $ | $ |
The Bruin Corporationâs purchases from suppliers in a quarter are equal to 65 percent of the next quarterâs forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $113 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $1,470 $1,620 $1,680 $1,920 Sales for the first quarter of the following year are projected at $1,590.
| Required: |
| Calculate Bruinâs cash outlays by completing the following (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)): |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
| Wages, taxes, other expenses | ||||
| Long-term financing expenses (interest and dividends) | ||||
| Total | $ | $ | $ | $ |
