Question

On December​ 31st, Baxtor, Inc. has cost of goods sold of $ 320000​, ending inventory is $ 11000​, beginning inventory is 20000​; and average accounts payable is $ 86000. What is the accounts payable turnover expressed as​ days?

A. 101

B. 109

C. 72

D. 95

Answer 1

	Cost of Goods Sold		$ 320000
	Ending Inventory		$ 11000
	Opening Inventory		$ 20000
	Average Accounts payable		$ 86000
	total purchases		Cost of goods sold + Ending inventory - Opening Inventory
	total purchases		$ (320000+11000-20000)
	total purchases		$ 311000
	Accounts payable turnover ratio			average accounts payable * 365 / total purchases
	Accounts payable turnover ratio			86000*365/311000
	Accounts payable turnover ratio			100.9325
	Accounts payable turnover ratio			101	DAYS
	OPTION A IS CORRECT