fraction of its purchases will be paid in the current
Question # 00099740
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Updated on: 09/02/2015 02:24 AM Due on: 10/02/2015
| If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid in the current quarter? In the following quarter? What if the delay is 60 days? | |||||||||
| Step 1: | |||||||||
| Worksheet - 30 day delay | Worksheet - 60 day delay | ||||||||
| Month of Purchase | Month for Payment | Month of Purchase | Month for Payment | ||||||
| 2012 Qtr. 4 | Dec | T | 2012 Qtr. 4 | Nov | T | ||||
| 2013 Qtr.1 | Jan | T | Dec | T | |||||
| Feb | T | 2013 Qtr.1 | Jan | T | |||||
| Mar | T | Feb | T | ||||||
| 2013 Qtr.2 | Apr | T | Mar | T | |||||
| May | T | 2013 Qtr.2 | Apr | T | |||||
| Jun | T | May | T | ||||||
| 2013 Qtr.3 | Jul | T | Jun | T | |||||
| Aug | T | 2013 Qtr.3 | Jul | T | |||||
| Sep | T | Aug | T | ||||||
| 2013 Qtr.4 | Oct | T | Sep | T | |||||
| Nov | T | 2013 Qtr.4 | Oct | T | |||||
| Dec | T | Nov | T | ||||||
| Dec | T | ||||||||
| Step 2: | |||||||||
| Answers: | |||||||||
| 30 day delay - Payment made at end of 2013 Qtr1 | |||||||||
| Fraction from last quarter | F | ||||||||
| Fraction from this quarter | F | ||||||||
| Fraction for next quarter | F | ||||||||
| 60 day delay - Payment made at end of 2013 Qtr1 | |||||||||
| Fraction from last quarter | F | ||||||||
| Fraction from this quarter | F | ||||||||
| Fraction for next quarter | F | ||||||||
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Solution: fraction of its purchases will be paid in the current