Use the Information for the Question(s)below

question 72

Multiple Choice

Use the information for the question(s) below. Glenside Industries is a domestic machinery manufacturer which specializes in the production of snowblowers.The above figures show the anticipated sales over the next four quarters.Glenside carries inventory equal to 25% of next quarter's sales,has accounts payable of 15% of next quarter's sales,and accounts receivable of 23% of this quarter's sales.
-If its net income is 10% of sales,in which quarter(s) is it expected that Glenside's seasonal working capital needs will be the greatest?

• A)Q1
• B)Q2
• C)Q3
• D)Q4
• E)Q5

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Definitions:

Contracts under Seal

Formal agreements that are validated by a wax seal or its modern equivalent, often denoting a heightened sense of formality and solemnity.

Letters of Credit

Financial instruments issued by a bank guaranteeing a buyer's payment to a seller upon the fulfillment of agreed conditions.

Research Data

Information collected, observed, or created for purposes of analysis to produce original research results.

Earn

To receive something in exchange for service or work done, usually refers to money.