Rossdale Products has projected the following sales for the coming year:
Q1 Q2 Q3 Q4
Sales $...
Rossdale Products has projected the following sales for the coming year:
Q1 Q2 Q3 Q4
Sales $910 $990 $950 $1,050
Sales in the year following this one are projected to be 15% greater in each quarter.
Required:
a. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30% of projected sales for the next quarter. Assume a payables period of 45 days.
b. Calculate payments to suppliers assuming a 90-day payables period.
c. Calculate payments to suppliers assuming a 60-day payables period.
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