Hello,

I have not clue how to derive at this answer. I am not looking for the answer just help?

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?


Please help!

Let says I have a December year end.

My January purchases I would pay for in February.
My Feb purchases in March
And my March purchases in April

The quarter is Jan – March.

So I am only paying 2/3 in the actual quarter. (I pay Jan and Feb this quarter, March next quarter)

Thanks for your help!

Quote:

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Originally Posted by jayb09

Hello,

I have not clue how to derive at this answer. I am not looking for the answer just help?

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?


Please help!!

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Hi Jay,

I am also confused about this one as well.