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8 Jan 2018

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

Sales Q1:$780 Q2:$900 Q3:$1,020 Q4:$990

Sales in the year following this one are projected to be 25 percent greater in each quarter.

Requirement 1: 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?

b)

What are the payments to suppliers each quarter? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)):

Q1 Q2 Q3 Q4
Payment of accounts $ $ $ $
Requirement 2:

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. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Q1 Q2 Q3 Q4
Payment of accounts $ $ $ $
Requirement 3:

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. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Q1 Q2 Q3 Q4
Payment of accounts $ $ $ $

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Nelly Stracke
Nelly StrackeLv2
9 Jan 2018

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