Al's Meat Market has annual sales of $523,000 and cost of goods sold of $358,000. The profit margin is 4.2 percent and the accounts payable period is 38 days. What is the average accounts payable balance?

Question

Quizplus · Accepted Answer

The average accounts payable balance can be calculated using the formula: (Cost of Goods Sold / 365 days) * Accounts Payable Period. Here, it is ($358,000 / 365) * 38 = $37,271.

Al's Meat Market Has Annual Sales of $523,000 and Cost