Answered step by step

Verified Expert Solution

## Question

1 Approved Answer

# Sexton Corporation has projected the following sales for the coming year: Sales in the year following this one are projected to be 2 0 percent

Sexton Corporation has projected the following sales for the coming year:

Sales in the year following this one are projected to be $20$ percent greater in each quarter.

Calculate payments to suppliers assuming that the company places orders during each quarter equal to $20$ percent of projected sales

for the next quarter. Assume that the company pays immediately.

a$.$ What is the payables period in this case?

Note: Do not round intermediate calculations and round your answer to the nearest whole number, e$.$g$.,\text{}32.$

Payables period

What are the payments to suppliers each quarter?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,\text{}32\mathrm{.}16.$

b$.$ Calculate payments to suppliers assuming that the company places orders during each quarter equal to $20$ percent of projected

sales for the next quarter. Assume a $90-$day payables period.

Note: Do not round intermediate calculations and round your answers to $2$ decimal places e$.$g$.,\text{}32\mathrm{.}16.$

c$.$ Calculate payments to suppliers assuming that the company places orders during each quarter equal to $20$ percent of projected

sales for the next quarter. Assume a $60-$day payables period.

Note: Do not round intermediate calculations and round your answers to $2$ decimal places e$.$g$.,\text{}32\mathrm{.}16.$

## Step by Step Solution

There are 3 Steps involved in it

### Step: 1

### Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

### Step: 2

### Step: 3

## Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started