Dorian Inc. has the following sales: Q1) $1,900 Q2) $2,400 Q3) $2,600 Q4) $2,400
Purchases are equal to 50% of the following quarter's sales. The sales for the first quarter of the following year are estimated at $2,100. The accounts receivable period is 30 days and the accounts payable period is 45 days.
Assume there are 30 days in each month.
The firm will purchase _____________ of goods in quarter two and pay its suppliers ___________ during quarter four.
Please show your work.
a) $1,080; $1,125
b) $1,300; $1,125
c) $1,300; $1,080
d) $1,170; $1,013