VIPSolutionsgive answer in 2 step with explanation at the end of each step and final answer at the end:Keedis Products has projected the following sales for the coming year: Q1 Q2 03 Q4 Sales $ 15,500 $ 13,950 $ 14,775 $ 15,725 The company places orders each quarter that are 25 percent of the following quarter's sales and has a 60-day payables period. What is the payment of accounts for the second quarter? Multiple Choice O $3,487.50 O $2,462.50 O $3745.83 O $3,625.00
Question:
give answer in 2 step with explanation at the end of each step and final answer at the end:
Keedis Products has projected the following sales for the coming year:
Q1 Q2 03 Q4
Sales $ 15,500 $ 13,950 $ 14,775 $ 15,725
The company places orders each quarter that are 25 percent of the following quarter's sales and has a 60-day payables
period. What is the payment of accounts for the second quarter?
Multiple Choice
O $3,487.50
O $2,462.50
O $3745.83
O $3,625.00
This is AI generated Response.
Asked by: Rahul
Created at: 2025-11-24 07:41:00
Asked by: Rahul
Created at: 2025-11-24 07:41:00
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## Step 1: Find the Amount Ordered in Q1 for Q2 Sales
The company places orders each quarter that are **25% of the following quarter's sales**.
For Q1, the order will be for 25% of Q2's sales.
- Q2 sales = $13,950
- 25% of $13,950 = $13,950 × .25 = **$3,487.50**
**Explanation:**
This is the amount ordered in Q1, which will be paid in Q2 due to the 60-day payables period.
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## Step 2: Find the Amount Ordered in Q2 for Q3 Sales
Similarly, in Q2, the order will be for 25% of Q3's sales.
- Q3 sales = $14,775
- 25% of $14,775 = $14,775 × .25 = **$3,693.75**
**Explanation:**
This is the amount ordered in Q2, but it will be paid in Q3.
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## Final Answer
**The payment of accounts for the second quarter is:**
**$3,487.50**
This is because the payment in Q2 is for the order placed in Q1 (for Q2's sales).
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