The December 31, 2012, balance sheet and income statement for Santana Company are presented below. Given this information, Santana's number of days' purchases in accounts payable during 2012 was

Question

The December 31, 2012, balance sheet and income statement for Santana Company are presented below.   Given this information, Santana's number of days' purchases in accounts payable during 2012 was

Quizplus · Accepted Answer

Number of days' purchases in accounts payable = (Accounts payable / Cost of goods sold) x 365
= (46,000/310,000) x 365
= 54.48 (rounded off to nearest whole number)
= 98 days (rounded off to nearest whole number)
Therefore, the correct answer is C.

The December 31, 2012, Balance Sheet and Income Statement for Santana