Answer the Question the specifics (no unnesscersary information needed) The Brui
ID: 2767647 • Letter: A
Question
Answer the Question the specifics (no unnesscersary information needed)
The Bruin Corporation's purchases from suppliers in a quarter are equal to 80 percent of the next quarter's forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 35 percent of sales, and interest and dividends are $116 per quarter. No capital expenditures are planned. Projected quarterly sales are: Sales for the first quarter of the following year are projected at $1,680. Required: Calculate Bruin's cash outlays by completing the followingExplanation / Answer
Purchases are 80% of next quarter’s forecasted sales.
Therefore purchases are:
Q0
Q1
Q2
Q3
Q4
Q5
Sales
1560
1710
1770
2010
1680
Purchases
1248
1368
1416
1608
1344
Payment is made in 60 days. That means in each quarter, 2/3 payment of last quarter purchases are paid and 1/3 of current quarter is paid.
Q1
Q2
Q3
Q4
Purchases
1368
1416
1608
1344
payment of accounts
1288
1384
1480
1520
Wages taxes and other expenses are 35% of sales.
Q1
Q2
Q3
Q4
Sales
1560
1710
1770
2010
Wages, taxes and other exp
546
598.5
619.5
703.5
Here is the table of all payments:
Q1
Q2
Q3
Q4
payment of accounts
1288
1384
1480
1520
Wages, taxes and other exp
546
598.5
619.5
703.5
Long term financing exp
116
116
116
116
Total
1950
2098.5
2215.5
2339.5
Q0
Q1
Q2
Q3
Q4
Q5
Sales
1560
1710
1770
2010
1680
Purchases
1248
1368
1416
1608
1344