Question

Given the following financial statements for GM, what is the A/P in days? (Round your answer to the nearest whole day.)

General Motors: Income Statement	12/31/14
Total Revenue		155,929,000
Cost of Revenue		142,121,000
Gross Profit		13,808,000
Operating Expenses
Selling, General and Administrative		12,158,000
Non-Recurring		120,000
Operating Income or Loss		1,530,000
Net Income		3,949,000
General Motors: Balance Sheet		12/31/14
Cash And Cash Equivalents		20,292,000
Short-Term Investments		9,222,000
Net Receivables		35,366,000
Inventory		13,642,000
Other Current Assets		5,148,000
Total Current Assets		83,670,000
Long-Term Investments		24,356,000
Property, Plant, and Equipment		34,803,000
Goodwill		1,427,000
Intangible Assets		4,983,000
Other Assets		3,024,000
Deferred Long-Term Asset Charges		25,414,000
Total Assets		177,677,000
Current Liabilities
Accounts Payable		50,713,000
Short/Current Long-Term Debt		14,988,000
Total Current Liabilities		142,220,000
Long-Term Debt		31,853,000
Other Liabilities		44,099,000
Minority Interest		567,000
Total Liabilities		142,220,000
Stockholders' Equity
Common Stock		16,000
Retained Earnings		14,577,000
Capital Surplus		28,937,000
Other Stockholder Equity		-8,073,000
Total Stockholder Equity		35,457,000

Answer 1

Accounts Payable in Days = (Accounts Payable / Cost of goods sold)*365

= ($50,713,000 / 142,121,000)*365

= 130 days