Grohl Products has projected the following sales for the coming year:
dr.two
Grohl Products has projected the following sales for the coming year:
| Q1 | Q2 | Q3 | Q4 | |
| Sales | $720 | $790 | $960 | $880 |
| Sales in the year following this one are projected to be 15 percent greater in each quarter. |
| Requirement 1: |
|
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. |
| (a) |
What is the payables period in this case? (Do not round intermediate calculations.) |
| Payables period |
| (b) |
What are the payments to suppliers each quarter? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)): |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
| Requirement 2: | |
|
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 a 90-day payables period. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
| Requirement 3: | |
|
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 a 60-day payables period. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) |
| Q1 | Q2 | Q3 | Q4 | |
| Payment of accounts | $ | $ | $ | $ |
