TDC's Purchases from Suppliers in a Quarter Are Equal to 61

question 74

Multiple Choice

TDC's purchases from suppliers in a quarter are equal to 61 percent of the next quarter's forecasted sales. The payables period is 60 days. Wages, taxes, and other expenses are 18 percent of sales, and interest and dividends are $72 per quarter. No capital expenditures are planned. The projected sales for Year 1 are $730, $770, $710, and $850 for Quarters 1 to 4, respectively. Sales for the first quarter of Year 2 are projected at $760. What is the amount of the total disbursements for Quarter 3 of Year 1?

• A) $672
• B) $661
• C) $649
• D) $678
• E) $634

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Definitions:

Informational Interview

An interview conducted to gather information about a job, career field, industry, or company from someone who has knowledge and experience in that area.

Performance Interview

A formal discussion between an employee and manager focused on evaluating the employee's job performance and setting future goals.

Interrogation Interview

A questioning process, often in a formal or official context, aimed at gathering information or confirming details, sometimes associated with law enforcement.

Shoplifting

The action of stealing goods from a shop while pretending to be a customer.