The following company information is available: $$\begin{array} { | l | r | }
\hline \text { Average accounts receivable } & \$ 100,000 \
\hline \text { Average inventories } & 150,000 \
\hline \text { Average accounts payable } & 140,000 \
\hline \text { Net sales } & 2,000,000 \
\hline \text { Cost of goods sold } & 1,400,000 \
\hline \text { Purchases } & 1,160,000 \
\hline
\end{array}$$
What is the company's accounts payable turnover ratio? (Round your answer to one decimal place, X.X.)

Question

The following company information is available: $$\begin{array} { | l | r | } 
\hline \text { Average accounts receivable } & \$ 100,000 \
\hline \text { Average inventories } & 150,000 \
\hline \text { Average accounts payable } & 140,000 \
\hline \text { Net sales } & 2,000,000 \
\hline \text { Cost of goods sold } & 1,400,000 \
\hline \text { Purchases } & 1,160,000 \
\hline
\end{array}$$ 
What is the company's accounts payable turnover ratio? (Round your answer to one decimal place, X.X.)

Quizplus · Accepted Answer

The accounts payable turnover ratio is calculated as Purchases divided by Average Accounts Payable. Here, it is $ \frac{1,160,000}{140,000} = 8.3 $.

The Following Company Information Is Available What Is the Company's Accounts Payable Turnover Ratio? (Round Your