a. Calculate payments to suppliers assuming that Maracaibo places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that Maracaibo pays immediately. What is the payables period in this case?
|
Q1 |
Q2 |
Q3 |
Q4 |
| Payment of accounts |
VEB |
VEB |
VEB |
VEB |
b. Rework (a) assuming a 90- day payables period.
|
Q1 |
Q2 |
Q3 |
Q4 |
| Payment of accounts |
VEB |
VEB |
VEB |
VEB |
c. Rework (a) assuming a60- day payables period.
|
Q1 |
Q2 |
Q3 |
Q4 |
| Payment of accounts |
VEB |
VEB |
VEB |
VEB |
Calculating Payments Fukuoka Sake Company's purchase from suppliers in a quarter is equal to 60 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends is 500 yen per quarter. No capital expenditures are planned.
Projects quarterly sales are:
|
Q1 |
Q2 |
Q3 |
Q4 |
| Sales |
$75,000 |
$90,000 |
$85,000 |
$80,000 |
Sales for the quarter of the following year are projected at $100,000. Calculate fukuoka's cash outlays by completing the following:
|
Q1 |
Q2 |
Q3 |
Q4 |
| Payment of accounts |
|
|
|
|
| Wages, taxes and other expenses |
|
|
|
|
| Long term finanicing express |
|
|
|
|
| (interest and dividends) |
|
|
|
|