Products has projected the following sales for the coming year: Sales in the year following this one
Question:
Products has projected the following sales for the coming year:
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Sales in the year following this one are projected to be 15 percent greater in each quarter.
a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately. What is the payables period in this case?
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b. Rework (a) assuming a 90-day payables period.
c. Rework (a) assuming a 60-day payables period.
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Input Area Projected sales increase 15 Orders of sales 30 b Payables period 90 c Payables period 60 ...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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