Wages, taxes and other expenses run about 22 of sales. 

Interests, and dividends are $22 million per quarter. 

The company plans a capital expenditure(fixed asset purchase) in Quarter 2, for $52 million, and Quarter 3, for $10 million.

 

Transcribed Image Text:

Estimation of sales(in millions) for the next four quarters are as follows: QI Q2 136 Q3 520 Q4 Sales 416 326 Sales for the first quarter of the year after this one is projected to be $149 million Accounts Receivable at the beginning of the year were $54 million. The Company has a 45-day collection period. The Company's purchases from suppliers in a quarter are equal to 41% of the next quarter's forecasted sales and suppliers are normally paid after 36 days, Estimation of sales(in millions) for the next four quarters are as follows: QI Q2 136 Q3 520 Q4 Sales 416 326 Sales for the first quarter of the year after this one is projected to be $149 million Accounts Receivable at the beginning of the year were $54 million. The Company has a 45-day collection period. The Company's purchases from suppliers in a quarter are equal to 41% of the next quarter's forecasted sales and suppliers are normally paid after 36 days,

Answer rating: 100% (QA)

Note 1 ending reciveble can be calculated by adding opening ... View the full answer