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Calculating Payments

	Q1	Q2	Q3	Q4
Sales	9,300	12,100	17,000	16,800

Sales in the year following this one are projected to be 12% greater in each quarter.
Calculate payments to suppliers assuming that Palladium Catalysis places orders during each quarter equal to 25% of projected sales for the next quarter. Assume that Palladium has a 60 day payable period.

Problem: Calculate Payment of accounts for Q1 threw Q4

Answer 1

		Year 0				Year 1
	Q0	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Total
Sales		9,300	12,100	17,000	16,800	10,416	13,552	19,040	18,816			117,024
Order Placed	2,325	10,000	13,325	16,950	15,204	11,200	14,924	18,984	14,112			117,024
Order placed formula	25%*Q1-YR0	25%*Q2YR0+ 75%*Q1YR0	-----> Same Formula
Payable (60 days)	775	4,883	11,108	14,533	16,368	13,869	12,441	16,277	17,360	9,408		117,024
Payable formula	Q0/3	(2/3*Q0+1/3*Q1)	-----> Same Formula