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Foodie Inc. Cash Outflows

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Purchases of Foodie Inc, from suppliers in any given quarter are 75% of the next quarter's forecast sales with 60 day terms. Wages taxes and other expenses are 20% of sales, and interest and dividends are $60 per quarter. No capital expenditures are planned. Forecasts of sales are $750 in Q1, $920 in Q2, $890 in Q3, $790 in Q4 and $970 for the first quarter of the following year. Calculate the firm's cash flows out.

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The solution provides the calculations needed to determine the cash outflows for Foodie Inc.

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Purchases of Foodie Inc, from suppliers in any given quarter are 75% of the next quarter's forecast sales with 60 day ...

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