14. Forecasting Payments.
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?

This question was answer by someone else and their answer was
If you have 30 days to pay...

Jan - pay Feb, etc.

This quarter 2/3
Next quarter 1/3

If at 60days?
This quarter 1/3
Next quarter 2/3

Quote:

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Originally Posted by cheryld

14. Forecasting Payments.
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?

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Thanks a bunch for the help.