Help on osbrone online question Cash Managment

topcat

Purchases are calculated as 45% of the next month’s forecast sales and are paid two months after the date of purchase.
For example, purchases in July are based on the estimated sales for August and paid for in September.


http://osbornebooks.rtahosting.co.uk/osborne18/q7.asp

why do i do 45% of September to get October purchases it makes no sense :mad2:

MarieNoelle

Hi topcat,
Your cash payment for October is for purchases you made 2 months before ie in August.
August purchases are calculated as 45% of September forecasted sales
So your cash payment in october is 76,100 x 45%=34245.

Does it make sense now?
MN:001_smile:

topcat

Hi MarieNoelle,

Thank you very much that makes sense now.:thumbup1:

The wording was driving me around the bend