Big Al's Meat Market has annual sales of $532,500 and cost of goods sold of $359,200....

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Big Al's Meat Market has annual sales of $532,500 and cost of goods sold of $359,200....

Big Al's Meat Market has annual sales of $532,500 and cost of goods sold of $359,200. The profit margin is 4.9 percent and the accounts payable period is 32.6 days. What is the average accounts payable balance? Assume 365 days per year

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Answer 1

Answer #1

days of payables outstanding = number of days in a year/accounts payable turnover

32.6 = 365/Accounts payables turnover

Accounts payables turnover = 11.2

Accounts payables turnover = purchases/payables

11.2 = 359200/Payables

Payables = 32071.43

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Answer 2

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Big Al's Meat Market has annual sales of $532,500 and cost of goods sold of $359,200....

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