Rocky Mountain Homes has sales of $1.45 million and average accounts payable of $74,400. The cost of goods sold is equivalent to 80% of sales. How long does it take Rocky Mountain to pay its
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Average payment period = (Average accounts payable / Cost of goods sold) * 365 days= ($74,400 / ($1.45 million * 0.8)) * 365 days= ($74,400 / $1.16 million) * 365 days= 24.01 days

Rocky Mountain Homes Has Sales of $1