Question

Weisbro and Sons purchases its inventory one quarter prior to the quarter of sale. The purchase price is 60 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of Quarter 1 is $28,600. What is the amount of the expected disbursements for Quarter 2 given the following expected quarterly sales

Answer 1

Answer:

$28,441.40

Explanation:

Note: Incomplete Question. However, assuming Quarter 1: $26,000 , Quarter 2: $32,000 , Quarter 3: $39,100 , Quarter 4: $46,100

Q2 Disbursement = [(60days/90days) (0.60*$32,000)] +  [(60days/90days) (0.60*$39,100 )}

Q2 Disbursement = 0.6667*$19,200 + 0.6667*$23,460

Q2 Disbursement = $12,800.64 + $15,640.782

Q2 Disbursement = $28,441.422

Q2 Disbursement = $28,441.40