THIS PROBLEM IS ALREADY SOLVED !!! i just need to know , if the payable period is 60 days and each quarter has 90 days then why are we doing 2/3 times last years sales and then doing 1/3 times this years sales. i am super confused please try to explain the best way possible . should 60 days be enough to pay within quarter 1 since its 90 days . and why are we even using 2/3 times sales . isn't is (90-60)/ 90 which is 1/3. i am super confused . please help .

shouldn't 60 days*

Check The Thakor Corporation's purchases from suppliers in a quarter are equal to 70 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 25 percent of sales, and interest and dividends are $80 per quarter No capital expenditures are planned Projected quarterly sales are: 01 04 Sale $1,000 $2,100 31,500 $1.500 Sales for the first quarter of the following year are projected at $2.130. Calculate the company's cash outlays by completing the following: (Do not round Intermediate calculations and round your answers to 2 decimal places, c.9. 32.16) 01 2 $ $ 1190 5 130 450 1400 525 1197 375 450 Payment of accounts Wapes, taxes, other expenses Long-term financing expenses (interest and dividends) Total 80 B0 HO 80 2005 1860 5 $ 1720 5 1652