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16 March, 02:33

Birds Unlimited has an accounts payable period of 60 days. The firm has expected sales of $17,800, $22,100, $24,400 and $28,800, respectively, by quarter for the next calendar year. The purchases for a quarter are equal to 65 percent of the following quarter's sales. What is the amount of the projected cash disbursements for accounts payable for Quarter 3

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  1. 16 March, 02:48
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    The correct answer is $23,053.34.

    Explanation:

    According to the scenario, the computation of the given data are as follows:

    Time period = 60 Days

    Purchase = 65 %

    So, we can calculate the cash disbursement by using following formula:

    Cash disbursement = [ (60 : 90) * (.65 * $24,400) ] + [ (60 : 90) * (.65 * $28,800) ]

    = $10,573.34 + $12,480

    = $23,053.34
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