Author Question: The Blatz Brewing Company produces 25 million hectolitres of beer each year. To put this in ... (Read 140 times)

robinn137 · **on:** Apr 25, 2021

The Blatz Brewing Company produces 25 million hectolitres of beer each year. To put this in perspective, California consumed that much beer last year. A sales forecast for Blatz is provided in the top row of the table. Blatz sells its beer at a wholesale price of US$85 per hectoliter. Blatz buys barley, hops and yeast one month before the sale. Raw materials cost are 15% of the wholesale price of the beer. Blatz purchases its raw materials on account and pays its suppliers one month after the purchase. What are Blatz' payments to suppliers in April?

Sales and Payments Forecast

Blatz Brewing Company

	January	February	March	April
Sales Forecast - millions of hectoliters	1	1	1.5	2
Sales Forecast - millions of dollars	$85	$85	$128	$170
Purchases from Suppliers
Payments to Suppliers

◦ $19.1
◦ $23.5
◦ $25.5
◦ $31.9
◦ $32.5

vish98 · **Reply #1 on:** Apr 25, 2021

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