Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $53204...

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Question

Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $53204...

Compute the Accounts Payable (A/P) period based on the following information:

Average A/P balance = $53204
Annual Cost of Goods Sold = $218177
Assume 365 days

business finance

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Answer 1

Answer #1

AP period=(Average AP/COGS)*365 days

(53204/218177)*365 days

which is equal to

=89.01 days(Approx).

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Answer 2

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Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $53204...