ne-off payment. Dynamic Futon forecasts the following purchases from suppliers: January February 42 38 Payables January Payables

 ne-off payment.

Transcribed Image Text:

Dynamic Futon forecasts the following purchases from suppliers: January February 42 38 Payables January Payables Value of goods ($ millions) a. Fifty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of 1 month. If Dynamic Futon starts the year with payables of $32 million, what is the forecasted level of payables for each month? Note: Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 1 decimal place. February January March February March 35 March April 32 April b. Suppose that, from the start of the year, the company stretches payables by paying 30% after 1 month and 10% after 2 months. (The remainder continue to be paid cash-on-delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment. Assume that Dynamic Futon didn't have any payable balance at the start of the year. Note: Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 1 decimal place. May 30 May April June 30 May June June Dynamic Futon forecasts the following purchases from suppliers: January February 42 38 Payables January Payables Value of goods ($ millions) a. Fifty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of 1 month. If Dynamic Futon starts the year with payables of $32 million, what is the forecasted level of payables for each month? Note: Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 1 decimal place. February January March February March 35 March April 32 April b. Suppose that, from the start of the year, the company stretches payables by paying 30% after 1 month and 10% after 2 months. (The remainder continue to be paid cash-on-delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment. Assume that Dynamic Futon didn't have any payable balance at the start of the year. Note: Do not round intermediate calculations. Enter your answers in millions of dollars rounded to 1 decimal place. May 30 May April June 30 May June June

Answer rating: 100% (QA)

1 The Depreciation Fund Method is attributed to group companies and accounting for finance standards and stands as a systematic approach to setting aside funds to replace assets as they depreciate ove... View the full answer