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    jayb09's Avatar
    jayb09 Posts: 18, Reputation: 2
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    #1

    Jun 13, 2007, 12:01 PM
    Forecasting payments
    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!
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Jun 13, 2007, 02:20 PM
    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)
    jayb09's Avatar
    jayb09 Posts: 18, Reputation: 2
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    #3

    Jun 13, 2007, 02:31 PM
    Thanks for your help!
    Nanamanye's Avatar
    Nanamanye Posts: 1, Reputation: 1
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    #4

    Jul 8, 2007, 07:59 AM
    Quote 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!!

    Hi Jay,

    I am also confused about this one as well.
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