Use the table for the question(s)below.
Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2006.
A simplified balance sheet for the firm appears below:

-Luther's Accounts Payable days is closest to:
A)39 days
B)32 days
C)59 days
D)42 days
E)47 days

Question

Use the table for the question(s)below.
Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2006.
A simplified balance sheet for the firm appears below:
  
-Luther's Accounts Payable days is closest to:
A)39 days 
B)32 days 
C)59 days 
D)42 days 
E)47 days

Quizplus · Accepted Answer

Luther's Accounts Payable days = (Accounts Payable / Cost of Goods Sold) * 365 days= (1,200 / 12,000) * 365 days= 39 days

Use the Table for the Question(s)below