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The Thakor Corporation's purchases from suppliers in a quarter are equal to 75 percent of the next quarter's forecasted sales. The payables period is...

The Thakor Corporation’s purchases from suppliers in a quarter are equal to 75 percent of the next quarter’s forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 15 percent of sales, and interest and dividends are $80 per quarter. No capital expenditures are planned.


 

Here are the projected quarterly sales:


 

    Q1     Q2     Q3     Q4  
  Sales $ 2,310   $ 2,610   $ 2,310   $ 2,010  


 

Sales for the first quarter of the following year are projected at $2,640. Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)


 

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


Top Answer

Q1 Q2 Q3 Q4 Payment of accounts 787.5 727.5 645 727.5 Wages, taxes, and other expenses 166 210 194 172 20% on sales Long-term... View the full answer

1 comment
  • where did you get 1050, 727.5 and 860?
    • mbagirl2016
    • Jul 20, 2016 at 4:19pm

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