Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Accounts payable days for 2009 is closest to:
A)27.5
B)5.71
C)52.4
D)63.8

Name: Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Accounts payable days for 2009 is closest to: A)27.5 B)5.71 C)52.4 D)63.8
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Quizplus · Accepted Answer

D)Accounts Payable Days = Accounts Payable/Average Daily Cost of Sales
Average Daily Cost of Sales = (Sales - gross profit)/365
Accounts Payable Days = 87.6/((610.1 - 109)/365)= 63.8

Luther Corporation's Total Sales for 2009 Were $610