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Calculating Payments

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The T Corporation's purchases from suppliers in a quarter are equal to 75% of the next quarter forecast sales. The payables period is 60 days. Wages Taxes and other expenses are 20 % of sales, and interest and dividends are $^0 per quarter. No capital expenditures are planned.
Here are the projected quarterly sales:
Sales:
Q1 $750
Q2 $920
Q3 $890
Q4 $790

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

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Solution Summary

The solution explains how to calculate the cash outlays for making payments given various variables.

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