1. Quarterly sales amount projected
Chapter 26, q. 5, p. 762
Quarterly sales amount projected Q1 Q2 Q3 Q4
Sales
800
760
940
870
Accounts Receivable at the beginning of the year are $300. the company has a 45-day collection period. Calculate cash collections in each of the 4 quarters. Then redo it with 60 days and 30 days respectively.

2. q.6, p. 762 calculate the operating cycle
Item
Beginning
Ending
Inventory
8,413
10,158
Accounts Receivable
5,108
5,439
Accounts Payable
6,927
7,625
net sales
67,312
Cost of goods sold
51,004

3. q.7, p.763 The projected sales:
540
630
710
785
Sales in the year following this one are projected to be 15% greater in each quarter.
A) calculate payments to suppliers assuming that the company places orders during each quarter equal to 30% of projected sales for the next quarter. Assume that the company pays immediately. What is payable period in this case?

4. Rework the task assuming a 90-day payables period.
And then with 60-day payables period.

5. q. 8, p. 763
Purchases from suppliers in a quarter are equal to 75% of the next quarter’s forecast sales. The payable period is 60 days. Wages, taxes, and other expenses are 20% of sales. Interest and dividends are 60$ per quarter. Q1 Q2 Q3 Q4
Sales
750
920
890
790

6. Sales for the first quarter of the following year are projected at $970. calculate the company’s cash outlays. Q1 Q2 Q3 Q4
Payment of accounts
Wages, taxes, other expenses
Long-term financing expenses (interest and dividends)
Total