Problem 19-11 If a firm pays its bills with a 30-day delay, what fraction of its
ID: 2648520 • Letter: P
Question
Problem 19-11
If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid in the current quarter? In the following quarter? What if the delay is 60 days?
Step 1:
Worksheet - 30 day delay
Worksheet - 60 day delay
Month of Purchase
Month for Payment
Month of Purchase
Month for Payment
2012 Qtr. 4
Dec
T
2012 Qtr. 4
Nov
T
2013 Qtr.1
Jan
T
Dec
T
Feb
T
2013 Qtr.1
Jan
T
Mar
T
Feb
T
2013 Qtr.2
Apr
T
Mar
T
May
T
2013 Qtr.2
Apr
T
Jun
T
May
T
2013 Qtr.3
Jul
T
Jun
T
Aug
T
2013 Qtr.3
Jul
T
Sep
T
Aug
T
2013 Qtr.4
Oct
T
Sep
T
Nov
T
2013 Qtr.4
Oct
T
Dec
T
Nov
T
Dec
T
Step 2:
Answers:
30 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
F
Fraction from this quarter
F
Fraction for next quarter
F
60 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
F
Fraction from this quarter
F
Fraction for next quarter
F
Problem 19-11
T requires text and F requires just a numberIf a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid in the current quarter? In the following quarter? What if the delay is 60 days?
Step 1:
Worksheet - 30 day delay
Worksheet - 60 day delay
Month of Purchase
Month for Payment
Month of Purchase
Month for Payment
2012 Qtr. 4
Dec
T
2012 Qtr. 4
Nov
T
2013 Qtr.1
Jan
T
Dec
T
Feb
T
2013 Qtr.1
Jan
T
Mar
T
Feb
T
2013 Qtr.2
Apr
T
Mar
T
May
T
2013 Qtr.2
Apr
T
Jun
T
May
T
2013 Qtr.3
Jul
T
Jun
T
Aug
T
2013 Qtr.3
Jul
T
Sep
T
Aug
T
2013 Qtr.4
Oct
T
Sep
T
Nov
T
2013 Qtr.4
Oct
T
Dec
T
Nov
T
Dec
T
Step 2:
Answers:
30 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
F
Fraction from this quarter
F
Fraction for next quarter
F
60 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
F
Fraction from this quarter
F
Fraction for next quarter
F
Explanation / Answer
Step 1:
Worksheet - 30 day delay
Worksheet - 60 day delay
Month of Purchase
Month for Payment
Month of Purchase
Month for Payment
2012 Qtr. 4
Dec
January 2013
2012 Qtr. 4
Nov
January 2013
2013 Qtr.1
Jan
February 2013
Dec
February 2013
Feb
March 2013
2013 Qtr.1
Jan
March 2013
Mar
April 2013
Feb
April 2013
2013 Qtr.2
Apr
May 2013
Mar
May 2013
May
June 2013
2013 Qtr.2
Apr
June 2013
Jun
July 2013
May
July 2013
2013 Qtr.3
Jul
August 2013
Jun
August 2013
Aug
September 2013
2013 Qtr.3
Jul
September 2013
Sep
October 2013
Aug
October 2013
2013 Qtr.4
Oct
November 2013
Sep
November 2013
Nov
December 2013
2013 Qtr.4
Oct
December 2013
Dec
January 2014
Nov
January 2014
Dec
February 2014
Step 2:
Answers:
30 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
1/3
Fraction from this quarter
3/3
Fraction for next quarter
1/3
60 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
2/3
Fraction from this quarter
3/3
Fraction for next quarter
2/3
Step 1:
Worksheet - 30 day delay
Worksheet - 60 day delay
Month of Purchase
Month for Payment
Month of Purchase
Month for Payment
2012 Qtr. 4
Dec
January 2013
2012 Qtr. 4
Nov
January 2013
2013 Qtr.1
Jan
February 2013
Dec
February 2013
Feb
March 2013
2013 Qtr.1
Jan
March 2013
Mar
April 2013
Feb
April 2013
2013 Qtr.2
Apr
May 2013
Mar
May 2013
May
June 2013
2013 Qtr.2
Apr
June 2013
Jun
July 2013
May
July 2013
2013 Qtr.3
Jul
August 2013
Jun
August 2013
Aug
September 2013
2013 Qtr.3
Jul
September 2013
Sep
October 2013
Aug
October 2013
2013 Qtr.4
Oct
November 2013
Sep
November 2013
Nov
December 2013
2013 Qtr.4
Oct
December 2013
Dec
January 2014
Nov
January 2014
Dec
February 2014
Step 2:
Answers:
30 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
1/3
Fraction from this quarter
3/3
Fraction for next quarter
1/3
60 day delay - Payment made at end of 2013 Qtr1
Fraction from last quarter
2/3
Fraction from this quarter
3/3
Fraction for next quarter
2/3