Calculate payments to suppliers assuming that company places

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Brunell Products has projected the following sales for the coming year: Q1 Q2 Q3 Q4 Sales $300 $390 $540 $480 Sales in the year following this one are projected to be 25 percent greater in each quarter. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume that the company pays immediately.

a. What is the payables period in this case?

b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 percent of projected sales for the next quarter. Assume a 90-day payables period.

c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 35 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.)

Reference no: EM131546073

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