DM Electronics Has Projected Sales of $1,700, $1,900, $2,400, and $4,200

DM Electronics has projected sales of $1,700, $1,900, $2,400, and $4,200 for Quarters 1 to 4, respectively. Sales in the following year are projected to be 4 percent greater in each quarter. Assume purchases during each quarter equal 48 percent of projected sales for the following quarter. How much will be paid to suppliers in Quarter 2 if its accounts payable period is 30 days?

A) $1,146
B) $1,108
C) $1,072
D) $1,251
E) $984

Correct Answer:

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