Gifts For All has projected sales for next year of: Q1 Q2 Q3 Q4 Sales S 26,000 S $23,473 $20,640 $23,625 $19,153 28,200 $ 34,900 $ 42,500 Purchases are equal to 60 percent of next quarter's sales. Each month has 30 days, the accounts receivable period is 37 days, and the accounts payable period is 40 days. How much will the company pay suppliers in the third quarter? $22,967
Gifts For All has projected sales for next year of: Q1 Q2 Q3 Q4 Sales S 26,000 S $23,473 $20,640 $23,625 $19,153 28,200 $ 34,900 $ 42,500 Purchases are equal to 60 percent of next quarter's sales. Each month has 30 days, the accounts receivable period is 37 days, and the accounts payable period is 40 days. How much will the company pay suppliers in the third quarter? $22,967
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Projected Sales for "Gifts For All" for Next Year:**
| Quarter | Sales ($) |
|---------|-----------|
| Q1 | 26,000 |
| Q2 | 28,200 |
| Q3 | 34,900 |
| Q4 | 42,500 |
**Problem Statement:**
Purchases are equal to 60% of the next quarter's sales. Each month has 30 days, the accounts receivable period is 37 days, and the accounts payable period is 40 days. Calculate the amount the company will pay suppliers in the third quarter.
**Options:**
- $22,967
- $23,473
- $20,640
- $23,625
- $19,153
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