Big Al's Meat Market has annual sales of $531,000 and cost of goods sold of $358,000.The profit margin is 4.8 percent and the accounts payable period is 41 days.What is the average accounts payable balance?

Name: Big Al's Meat Market has annual sales of $531,000 and cost of goods sold of $358,000.The profit margin is 4.8 percent and the accounts payable period is 41 days.What is the average accounts payable balance?
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Question

Quizplus · Accepted Answer

Accounts payable balance = $358,000/365 × 41 = $40,214

Big Al's Meat Market Has Annual Sales of $531,000 and Cost