The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of...

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The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of...

The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of goods sold is equivalent to 62 percent of sales. How long does it take the company to pay its suppliers?

Multiple Choice

79.69 days
93.45 days
89.85 days
100.86 days
74.07 days

business accounting

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Answer 1

Answer #1

Sales = $748,320

Cost of goods sold = 62% of sales

= 748,320 x 62%

= $463,958.40

Average accounts payable = $128,209

Accounts payable days = 365 x Average accounts payable / Cost of goods sold

= 365 x 128,209/463,958.40

= 100.86 days

Fourth option is correct.

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Answer 2

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The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of...

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Add Answer to: The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of...

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