Ospika Products has projected the following sales for the coming year: Sales in the year following this

Question:

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

Sales in the year following this one are projected to be 15% greater in each quarter.

a. Calculate payments to suppliers assuming that Ospika places orders during each quarter equal to 30% of projected sales for the next quarter. Assume that Ospika 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 payables period.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9781259654756

10th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts, J. Ari Pandes, Thomas Holloway

See More Books

Question Posted: Nov 21, 2022 03:34 AM

See More Questions

Lewellen 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...
Lewellen 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...
Brunell 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...
The focal length of a thin biconvex lens is 20 cm. When an object is moved from a distance of 25 cm in m25 front of it to 50 cm, the magnification of its image changes from ms to m50. The ratio is m50
If X has a hypergeometric distribution with M = 3, N = 6, and n = 2, find the probability distribution of Y, the number of successes minus the number of failures.
What is the difference between Big Data and Data Analytics? Give an example of the difference.
Write a Monte Carlo code for a system of $N$ hard spheres of diameter $D$ on a one-dimensional ring of length $L$ with periodic boundary conditions. Calculate the pair correlation function and...
Joe Jones wants to establish a construction fund (or sinking fund) to pay for a new bowling alley he is having built. Construction of the bowling alley is expected to take six months and cost...
X Ltd. (X) purchased 40% of Y Ltd. (Y) on January 1, 2022, for $400,000. Y paid dividends of $50,000 in each year. Y's income statements for 2022 and 2023 showed the following. Time left 1:29:35 2022...
Marilyn Marshall, a Professor of sports economics, has obtained a data set of home attendance for each of the 30 major league baseball franchises for each season from 2010 through 2016. Dr. Marshall...
You own 1,000 shares of stock in Armstrong Corporation. You will receive a $2.70 per share dividend in one year. In two years, Armstrong will pay a liquidating dividend of $46 per share. The required...
The company with the common equity accounts shown here has declared a 15% stock dividend when the market value of its stock is $61 per share. What effects on the equity accounts will the distribution...
A decision maker is working on a problem that requires her to study the uncertainty surrounding the payoff of an investment. There are three possible levels of payoff $1,000, $5,000, and $10,000. As...
The Akimbo Company issues bonds with a face value of $12 million on June 1, Year One, for 93 percent of face value plus accrued interest. The bonds pay an annual cash interest rate of 10 percent with...
High Tide is a one product business and manufactures board short for men. They operate out of rented premises in Currumbin Creek Road, where the factory is split into a manufacturing and storage area...
Given: f(x)=x- 3 x +9 Find f (x + h) =
Suppose that the population of a town is given by P(t)=8 In 3t+7. where t is the time in years after 1980 and P is the population of the town in thousands. Find P'(t).
Find f. f'(x) = 16x 1 x > 0, f(1) = 6
Why do brand names like Kodak, Disney, or Coca-Cola create customer value and provide a basis for product line positioning and differentiation?
Reduction in sales All of the above 29. Belt of an electric motor is broken, it needs a. Corrective maintenance b. Scheduled maintenance c. Preventive maintenance d. Timely maintenance. 30. The...
Stock Values the JacksonTimberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. If...
Stock Values the next dividend payment by Top Knot, Inc., will be $2.50 per share. The dividends are anticipated to maintain a 5percent growth rate forever. If the stuck currently sells for $48.00...
Stock Values For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield?
In the fashion industry how a brand or retailer would use demographics data to reach their target market? As well as example of how an brand or retailer would use psychographic data to reach their...
- Marketing Chapter #9 Textbook Assignments 2.) Based on your personal strengths and weaknesses, which type of sales position do you think would be best for you? Explain your answer and also share...
Relate the Gaps model to some of the examples from the session 1 discussion. Which gaps (or lack thereof) contributed to either good or bad service experiences? Which gaps are the most or least...

Ospika Products has projected the following sales for the coming year: Sales in the year following this

Question:

Sales Q1 $790 Q2 $870 Q3 $830 Q4 $930

Step by Step Answer:

a The payables period is zero since the company pays immediately The payment in each ...View the full answer

Fundamentals Of Corporate Finance

Students also viewed these Business questions