Giant Koala Stores Inc has forecasted sales for July through October in the top row of the table. Purchases are 65% of sales. All purchases are made one month in advance of the sale
Ten percent (10%) of suppliers are paid in the month of purchase and the remainder are paid in the following month. What are Giant Koala's payments to suppliers in September?
Sales Forecast, Purchases and Payments to Suppliers
Giant Koala Stores Inc ($000,000)
July August September October
Sales Forecast $18.000 $18.000 $22.000 $21.000
Purchases from Suppliers 11.700 14.300
Payments to Suppliers 1.170 1.430
Payments to Suppliers from last Month 12.870
Total Payments to Suppliers
A) $11.313 million
B) $11.625 million
C) $12.456 million
D) $14.235 million
E) $15.4 million
D
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