Question

The company places orders each quarter that are 55 percent of next quarter's sales and has a 30-day payables period. The projected sales for next year are: Sales Multiple Choice O What is the accounts payable balance at the end of the second quarter? O O Q1 -$ 54,150 Q2= $ 60,850 Q3- $ 69,450

Q4- $ 74,950
$11.156 $17.522
$12,733 $22,312 $25,465

Answer 1

The accounts payable balance at the end of Q2 is calculated to be 55% of Q3's projected sales, which amounts to $38,198.

Step-by-step explanation:

To determine the accounts payable balance at the end of the second quarter, we need to calculate the orders placed for the third quarter, as the company places orders that are 55 percent of the next quarter's sales. Based on the given information, the projected sales for Q3 are $69,450.

The orders placed for Q3:
55% of Q3 sales = 0.55 * $69,450 = $38,197.50

Since the company has a 30-day payables period, the accounts payable balance at the end of Q2 would be the orders that have not yet been paid for, which would be the orders placed in the last 30 days of Q2. As we do not have monthly sales data, we will consider the entire Q3 order amount as the payable balance at the end of Q2, assuming that the order is placed at the end of Q2 and payable in 30 days. Therefore, the accounts payable balance at the end of Q2 is $38,197.50, or when rounded to the nearest whole number, $38,198.