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  • Mar 8, 2007, 01:59 PM
    momjidi
    Finance and Accounting
    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 60days?
  • Mar 8, 2007, 05:19 PM
    CaptainForest
    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
  • Aug 25, 2007, 09:20 PM
    grr82bntx
    Captain,

    Why would it not be 1/3 for the first quarter and 2/3 for the second?

    And 1/3 for the 60 day deferral?

    I am trying to break this down Barney-style so I can understand it. With 12 months, and 4 quarters... with a 30-day delay in payments would come out to just skipping a month and two for the 60-day... How far off am I?

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