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Likurg_2 [28]
3 years ago
13

Heritage, Inc., had a cost of goods sold of $44,621. At the end of the year, the accounts payable balance was $8,403. How long o

n average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Days' sales in payables days
Business
1 answer:
Fiesta28 [93]3 years ago
7 0

Answer:

Days sales in payable = 68.74 days(Approx)

Explanation:

Given:

Cost of goods sold = $44,621

Accounts payable = $8,403

Days sales in payable = ?

Computation of Days sales in payable :

Days\ sales\ in\ payables=(Accounts\ payable\/cost\ of\ goods\ sold)\times365\ days

Days sales in payable = ($8,403 / $44,621) × 365 days

Days sales in payable = 0.188319401 × 365 days  

Days sales in payable = 68.7365814

Days sales in payable = 68.74 days(Approx)

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Explanation:

Note: See the attached excel file for all the calculations of all the answers a to f above.

Download xlsx
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