Question

Calculating Payments. Palladium Catalysis has projected the following sales for the coming year:

	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 pays immediately.

Problem 1: Calculate Payment of accounts for Q1 threw Q4.

Problem 2: Rework assuming a 90-day payables period calculate Payment on Accounts for Q1 threw Q4

Problem 3: Rework assuming a 60-day payables period calculate Payment on Accounts for Q1 threw Q4

Answer 1

Please find below the answers.