Sexton Corp. has projected the following sales for the coming year: Sales in the year following this

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Sexton Corp. 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 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?

b. Rework part (a) assuming a 90-day payables period.

c. Rework part (a) assuming a 60-day payables period.

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Fundamentals Of Corporate Finance

ISBN: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Aug 24, 2021 06:46 AM

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Sexton Corp. has projected the following sales for the coming year: Sales in the year following this

Question:

Q1 Q2 Q3 Q4 Sales $940 $1,130 $1,210 $1,450

Step by Step Answer:

a Q 1 363 Q 2 435 Q 3 282 Q 4 339 Pay ables period in ...View the full answer

Fundamentals Of Corporate Finance

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