Question

An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable.

Sales = $58,983
Cost of Goods Sold (COGS) = $22,810
Cash Cycle = 39 days
Operating Cycle = 148 days
Accounts Receivable Period = AR Period = Average Collection Period (ACP) = 25 days
What is the company's Accounts Payable balance?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

Answer 1

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ACCOUNTS latest - Microsoft Excel (Product Activation Failed) View Add-Ins File Home Insert Page Layout Formulas Data Review - 2x % Cut Σ AutoSum : A Calibri Dr General BEHAR Wrap Text Merge Merge & Center - Center B I SF $ -% % 4:0 .00 . Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear -11AA = = = U B- A Font fx NN NO Sort & Filter Editing Find & Select Alignment E Copy Paste Format Painter Clipboard NR134 NM 117 Number Cells N P NQ NR N S NT NU NV NW NX NY NZ 118 119 120 CASH CONVERSION CYCLE = OPERATING CYCLE = 39 DAYS 148 DAYS 121 122 CASH CONVERSION CYCLE = INVENTORY CONVERSION PERIOD + ACCOUNTS RECEIVABLE PERIOD - ACCOUNTS PAYABLE PERIOD OPERATING CYCLE = INVENTORY CONVERSION PERIOD + ACCOUNTS RECEIVABLE PERIOD 123 SO ACCOUNTS PAYABLE PERIOD = OPERATING CYCLE - CASH CONVERSION CYCLE SO ACCOUNTS PAYABLE PERIOD = 148-39 = 109 DAYS 124 125 126 127 128 129 130 131 PAYABLES DEFERAL PERIOD = 365 DAYS X ACCOUNTS PAYABLE/COGS = 365 X ACCOUNTS PAYABLE/22810 = 109 = 365 X ACCOUNTS PAYABLE/22810 ACCOUNTS PAYABLE = 109 X 22810/365 = 6811.75 132 ANSWER ACCOUNTS PAYABLE = 6811.75 133 134 135 136 H Rea FIFO budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET dupont CASH BUDGET ferences: 569 DIFF ANALYSIS BO. ovel 120% - ... 19 . * OENG 25-11-2019