Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 65
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 $80
per quarter. No capital expenditures are planned.
Here are the projected quarterly sales:
Q1
Q2
Q3
Q4
Sales $2,040 $2,340 $2,040 $1,740
Sales for the first quarter of the following year are projected at $2,370. Calculate the
company's cash outlays by completing the following: (Do not round intermediate
calculations and round your answers to 2 decimal places, e.g., 32.16.)
Payment of accounts
Wages, taxes, other expenses
Long-term financing expenses (interest and dividends)
Total
Q1
Q2
Q3
Q4
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Transcribed Image Text:The Bandon Pine Corporation's purchases from suppliers in a quarter are equal to 65 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 $80 per quarter. No capital expenditures are planned. Here are the projected quarterly sales: Q1 Q2 Q3 Q4 Sales $2,040 $2,340 $2,040 $1,740 Sales for the first quarter of the following year are projected at $2,370. Calculate the company's cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payment of accounts Wages, taxes, other expenses Long-term financing expenses (interest and dividends) Total Q1 Q2 Q3 Q4
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