Dynamic Futon: Forecast level of payable for each month
Not what you're looking for?
Dynamic Futon forecasts the following purchases from suppliers:
Jan. Feb. Mar. Apr. May Jun.
Value of goods ($ millions) 32 28 25 22 20 20
a. Forty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of one month. If Dynamic Futon starts the year with payables of $22 million, what is the forecasted level of payables for each month?
b. Suppose that from the start of the year the company stretches payables by paying 40% after one month and 20% after two months. (The remainder continue to be paid cash on delivery.) Recalculate payables for each month assuming that there are no cash penalties for late payment.
Purchase this Solution
Solution Summary
The solution computes forecast level of payable for each month.
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Motivation
This tests some key elements of major motivation theories.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking