Question

Brunell Products has projected the following sales for the coming year:
  

	Q1	Q2	Q3	Q4
Sales	$510	$600	$750	$690

  
Sales in the year following this one are projected to be 20 percent greater in each quarter.
  
Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume that the company pays immediately.
  
a. What is the payables period in this case? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
Payables period            
  
What are the payments to suppliers each quarter? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
  

	Q1	Q2	Q3	Q4
Payment of accounts	$	$	$	$

  
b. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 percent of projected sales for the next quarter. Assume a 90-day payables period. (Do not round intermediate calculations. Round your answers to 2 decimal places e.g., 32.16.)
  

	Q1	Q2	Q3	Q4
Payment of accounts	$	$	$	$

c. Calculate payments to suppliers assuming that the company places orders during each quarter equal to 30 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.)
  

	Q1	Q2	Q3	Q4
Payment of accounts	$	$	$	$

Answer 1

a.

If company pays immediately then payable period is 0 days.

If company pays immediately Payment account is calculated in excel and screen shot provided below:

b.

if payable period is 90 days it mean comapny pays exactly after one quarter after purchase. So if payable period 90 days then Payment account is calculated in excel and screen shot provided below:

c.

if payable period is 60 days it mean one third of total purchase is paid in quarter of purchase and two third of purchase paid in next quarter. So if payable period 60 days then Payment account is calculated in excel and screen shot provided below: