Your firm sells $6,000 worth of goods in December, $4,700 worth in January, $5,100 in February, and $5,800 in March. Your cost is 65% of your selling price. You have a receivables period of 30 days and a payables period of 60 days. You buy your products one month prior to selling them. How much will you pay on your accounts payable in February?

Question

Quizplus · Accepted Answer

In February, you will pay for the goods purchased in January. The cost of goods sold in January is 65% of $4,700, which is $3,055.

Your Firm Sells $6,000 Worth of Goods in December, $4,700