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The Underground's Has Annual Sales of $1

Question 78

Multiple Choice

The Underground's has annual sales of $1.46 million.The cost of goods sold is equal to 80 percent of sales.The firm has an average accounts receivable balance of $150,000 and an average accounts payable balance of $163,500.How many days on average does it take the firm to pay its suppliers?


A) 7.14 days
B) 47.72 days
C) 49.81 days
D) 51.09 days
E) 56.67 days

Correct Answer:

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