Use the Information for the Question(s)below

question 16

Multiple Choice

Use the information for the question(s) below. Azamel Cosmetics specializes in cosmetics which have high levels of UV protection.The above figures show the anticipated sales over the next four quarters.Azamel carries inventory equal to 30% of next quarter's sales,has accounts payable of 20% of next quarter's sales,and accounts receivable of 25% of this quarter's sales.
-If its net income is 12% of sales,in which quarter(s) is it expected that Azamel's seasonal working capital needs will be the smallest?

• A)Q1
• B)Q2
• C)Q3
• D)Q4
• E)Q5

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Definitions:

Interest Income

Income earned from deposit accounts or investments through the receipt of interest payments.

Fair Value

The estimated market value of an asset or liability, based on current conditions rather than historical cost.

Long-Term Investments

Investments in securities or other assets intended to be held for a period exceeding one year for capital growth or income generation.

Trading Investment

An investment in securities with the intention of selling them in the short term to profit from price changes.