Question

The Corporation purchases from suppliers in a quarter are equal to 55 percent of the next quarter's forecast sales. The payables period is 90 days. Wages, taxes and other expenses are 25 percent of sales and interest and dividends are $82 per quarter. No capital expenditures are planned.

Here are the projected quarterly sales:

	Q1	Q2	Q3	Q4
Sales	1390	1520	1640	1160

Sales for the first quarter of the following year are projected at $1,740. Calculate the company's cash outlays by completing the following:

	Q1	Q2	Q3	Q4
Payment of accounts
Wages, taxes and other expenses
Long-term financing expenses (interest and dividends)
Total

Shows all the step and formula. Don't round off until you get the answer.

Answer 1

Calculate the payment outlay as follows:

Q1 $836.00 $902.00 $638.00 $957.00 $347.50 $380.00 $410.00 $290.00 Q4 Q2 Qз 2 Payment of accounts 3 Wages taxes and other expenses 4 Long term financing expenses 5 Total $82.00 $82.00 $82.00 $82.00 $1,265.50 $1,364.00 $1,130.00 $1,329.00

Formulas:

E Q3 =1160*55% =1640*25% Q2 =1520*55% 3 Wages taxes and other expenses =1390*25% Q4 =1740*55% =1160*25% Q1 =1640*55% 2 Payment of accounts =1520*25% 4 Long term financing expenses 82 82 82 82 =SUM(B2:B4) =SUM(C2:C4) =SUM(D2:D4) =SUM(E2:E4) 5 Total