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Hello Tutor,I have a question and the question is from June 2008 past year question 3 ‘Bridgewater Co’
The last sentence of the paragraph is ” He intends to delay payment on 50% of all invoices received from the trainers in the first two quater, paying them one month later than is usual”.
The current trainer cost for Q1 is $8000,Q2 is $7200, Q3 is $10000, Q4 is $12000
And the answer for increased trainer cost in Q3 is $12000 and $14400 in Q4
Hope tutor can help me to calculate the figure as I really can’t figure out.ThanksThe figures you quote have nothing to do with part c of the question – they relate to part b (the revised forecasts to the profits, and the profits are not affected by delaying payment).
According to the details in the question regarding the software upgrade, the fact that the sales revenue will increase by 20% (at normal sales prices) means that the training costs will also increase by 20%.
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