The Thunder Dan's Corporation's Purchases from Suppliers in a Quarter

question 25

Multiple Choice

The Thunder Dan's Corporation's purchases from suppliers in a quarter are equal to 65 percent of the next quarter's forecasted sales.The payables period is 60 days.Wages,taxes,and other expenses are 16 percent of sales,and interest and dividends are $60 per quarter.No capital expenditures are planned.Sales for the first quarter of the following year are projected at $720.The projected quarterly sales are:
What is the amount of the total disbursements for Quarter 2?

• A) $564.27
• B) $579.43
• C) $582.15
• D) $585.30
• E) $590.67

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Definitions:

Net Income

What a business earns in profit once every cost and tax is deducted from its revenue.

Bonus Plan Expense

Costs associated with incentive-based compensation programs designed to reward employees for their performance.

Gross Earnings

Gross earnings refer to the total income earned by an individual or company before any deductions such as taxes or other withholdings.

Taxes Applied

The implementation of tax rates to various forms of income, activities, or transactions.