Question

Iron Man Products has projected the following sales for the coming year:


Sales in the year following this one are projected to be 15 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. What is the payables period in this case?


b. Rework (a) assuming a 90-day payables period.
c. Rework (a) assuming a 60-day payablesperiod.


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  • CreatedMarch 13, 2014
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