Erin's Purchases from Suppliers in a Quarter Are Equal to 67

question 30

Multiple Choice

Erin's purchases from suppliers in a quarter are equal to 67 percent of the next quarter's forecast sales.The payables period is 60 days.Wages,taxes,and other expenses are 30 percent of sales,and interest and dividends are $90 per quarter.No capital expenditures are planned.Projected quarterly sales are: Sales for the first quarter of the following year are projected at $1,510.What is the amount of the firm's total cash outlay for the third quarter?

• A)$1,990
• B)$1,420
• C)$1,480
• D)$1,530
• E)$1,550

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