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The Thakor Corporation’s purchases from suppliers in a quarter are equal to 75 percent of the next quarter’s forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $90 per quarter. No capital expenditures are planned. Projected quarterly sales are: Q1 Q2 Q3 Q4 Sales $ 2,100 $ 2,400 $ 2,100 $ 1,800 Sales for the first quarter of the following year are projected at $2,430. Calculate the company’s cash outlays by completing the following:

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anthougo

The calculation of Thakor Corporation’s cash outlays is completed as follows:  

                                                         Q1            Q2            Q3            Q4  

Payment of accounts             $1,725      $1,650      $1,425       $1,665  

Wages, taxes, other expenses   $420         $480        $420         $360            

Long-term financing expenses

(interest and dividends)        $90           $90           $90           $90      

Total                                $2,235      $2,220      $1,935       $2,115

Data and Calculations:

                                    Q1             Q2           Q3             Q4           Q1

Sales                      $2,100     $2,400     $2,100       $1,800    $2,430

Purchases             $1,800      $1,575      $1,350       $1,823

Payment               $1,200      $1,650      $1,425       $1,665

Purchases = 75% of next quarter's sales

Purchases for previous year's quarter = $1,575 ($2,100 x 75%)

Accounts Payable from previous year's quarter is estimated to be $525 ($1,575 x 30/90)

Payments for purchases = $Purchase x 60/90 + previous quarter's balance

Wages, taxes, etc  $420        $480        $420         $360

Wages, etc. = 20% of sales

Interest & dividend $90           $90          $90           $90

Learn more: https://brainly.com/question/8707644

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