The following information is known for Alcorn Company for the year ended December 31: Compute Alcorn Company's payables turnover for the current year (round to two decimal places).
A) 10.89 times
B) 9.18 times
C) 8.52 times
D) 7.94 times

Question

The following information is known for Alcorn Company for the year ended December 31:  Compute Alcorn Company's payables turnover for the current year (round to two decimal places).
A) 10.89 times 
B) 9.18 times 
C) 8.52 times 
D) 7.94 times

Quizplus · Accepted Answer

Payables turnover = Cost of goods sold / Average accounts payable
= 1,075,000 / [(85,000 + 110,000) / 2]
= 9.18 times (rounded to two decimal places)

The Following Information Is Known for Alcorn Company for the Year