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**Quarterly sales amount projected**

Chapter 26, q. 5, p. 762 Quarterly sales amount projected Q1 Q2 Q3 Q4 Sales 800 760 940 870 Accounts Receivable at the beginning of the year are $300. the company has a 45-day collection period. Calculate cash collections in each of the 4 quarters. Then redo it with 60 days and 30 days respectively.

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**q.6, p. 762 calculate the operating cycle**

Item Beginning Ending Inventory 8,413 10,158 Accounts Receivable 5,108 5,439 Accounts Payable 6,927 7,625 net sales 67,312 Cost of goods sold 51,004

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**q.7, p.763 The projected sales:**

540 630 710 785 Sales in the year following this one are projected to be 15% greater in each quarter. A) calculate payments to suppliers assuming that the company places orders during each quarter equal to 30% of projected sales for the next quarter. Assume that the company pays immediately. What is payable period in this case?

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**Rework the task assuming a 90-day payables period.**

And then with 60-day payables period.

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q. 8, p. 763 Purchases from suppliers in a quarter are equal to 75% of the next quarter’s forecast sales. The payable period is 60 days. Wages, taxes, and other expenses are 20% of sales. Interest and dividends are 60$ per quarter. Q1 Q2 Q3 Q4 Sales 750 920 890 790

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Sales for the first quarter of the following year are projected at $970. calculate the company’s cash outlays. Q1 Q2 Q3 Q4 Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total

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