forecasting a payment

ekp131 · #1 Sep 19, 2007, 11:15 AM

If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid for in the current quarter? In the following quarter? What if its payment delay is 60 days?

Ok so If I am thinking of this right the fraction would be 1/3 for the 30 day and then... I think I am lost

rere 123 · Oct 5, 2007, 06:36 PM

The company will have paid for 2/3 of its purchases at the end of the first qtr. (Jan bills will be paid in Feb., bills will be paid in march, and so on.

In the second qtr, they will have paid 5/6 of their purchases. (Still carrying Jan over)

If it's 60 days, then 1/3 in the 1st qtr, and 2/3 in the second

lawrelp · Jan 1, 2008, 08:40 AM

If a firm pays its bills with a 30-day , what fraction of its purchases will be paid for in the current quarter?

Do I divide 30 days by how many days are in the quarter and figure out the fraction part?



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