Question

The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 75 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $90 per quarter. No capital expenditures are planned. Projected quarterly sales are shown here:



Sales for the first quarter of the following year are projected at $2,150. Calculate the company’s cash outlays by completing thefollowing:


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  • CreatedMarch 13, 2014
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