Birds Unlimited Has a 45 Day Accounts Payable Period

Multiple Choice

Birds Unlimited has a 45 day accounts payable period. The firm has expected sales of $1,800,$2,100,$2,400 and $2,800,respectively,by quarter for the next calendar year. The cost of goods sold for a quarter is equal to 65% of the next quarter sales. What is the amount of the projected cash disbursements for accounts payable for Quarter 2 of the next year? Assume that a year has 360 days.

A) $1,125.00
B) $1,462.50
C) $1,690.00
D) $2,125.50
E) $2,250.00