Question

Purchases are equal to 62 percent of next quarter's sales. Each month has 30 days, the accounts receivable period is 39 days, and the accounts payable period is 42 days. How much will the company pay suppliers in the third quarter

Answer 1

Answer:

The answer is "24415.14".

Explanation:

please find the complete question in the attached file.

Payment for $Q_2$ purchases to supplier:

$\to 28,600 \times \frac{62\%}{90} \times 42 \\\\\to 28,600 \times \frac{0.62}{90} \times 42 \\\\\to \frac{17732}{90} \times 42 \\\\\to 197.02 \times 42 \\\\\to 8274.84$

Payment for $Q_3$ purchases to supplier:

$\to 35,500 \times \frac{62\%}{90} \times 66\\\\\to 35,500 \times \frac{0.62}{90} \times 66\\\\\to \frac{22,010}{90} \times 66\\\\\to \frac{22,01}{9} \times 66\\\\\to 244.55 \times 66\\\\\to 16140.3$

Third quarter payment=   $8274.84+16140.3\ = 24415.14$