Pannick Motors Has Projected the Following Sales for the Coming

question 8

Multiple Choice

Pannick Motors has projected the following sales for the coming year. Sales in the year following this one are projected to be 12 percent greater in each quarter.Assume the company places orders during each quarter equal to 45 percent of projected sales for the next quarter.How much will the firm pay its suppliers in quarter 3 if the firm has a 60-day payables period?

• A)$408
• B)$427
• C)$463
• D)$489
• E)$511

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Definitions:

Photoreceptors

Cells in the retina that are sensitive to light and enable the process of converting light into electrical signals for vision.

Optic Disc

The region in the eye where nerve fibers from the retina converge to form the optic nerve, leading to a natural blind spot.

Blind Spot

Retinal region where axons forming the optic nerve leave the eye and where blood vessels enter and leave; has no photoreceptors and is thus said to be blind.

Iris

The iris is the colored part of the eye that surrounds the pupil and controls the amount of light entering the eye by adjusting the size of the pupil.