Question

The annual accounts payable is 4,800; the annual revenue is 75,000, and the gross profit margin is 40%. The payable days estimated from the data above is ______. Review Later 29 46 39

Answer 1

Answer:

Estimated Payable Days = 39

Explanation:

Given:

Annual account Payable = 4,800

Annual revenue = 75,000

Gross profit margin = 40%

Find:

Payable days

Computation:

Annual expense = Annual revenue(1-Gross profit margin)

Annual expense = 75,000(1-0.4)

Annual expense = 45,000

Estimated Payable Days = [4,800 × 365] / 45,000

Estimated Payable Days = 39