A company reports Cost of Goods Sold of $420,000, Ending Inventory of $52,000, Beginning Inventory of $50,000, Ending Accounts Payable of $51,000 and Beginning Accounts Payable of $35,000. What is the days' payable outstanding? (Round any intermediary calculations to two decimal places and your final answer to the nearest day.)

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Quizplus · Accepted Answer

Days' payable outstanding = (Ending Accounts Payable + Beginning Accounts Payable) / 2 * 365 / Cost of Goods Sold * (Ending Inventory - Beginning Inventory)= (51,000 + 35,000) / 2 * 365 / 420,000 * (52,000 - 50,000)= 43 * 365 / 420,000 * 2,000= 37.02 days= 37 days

A Company Reports Cost of Goods Sold of $420,000, Ending