A company reports Cost of Goods Sold of $400,000,Ending Inventory of $50,000,Beginning Inventory of $30,000,Ending Accounts Payable of $40,000 and Beginning Accounts Payable of $32,000.What is the days' payable outstanding?

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Quizplus · Accepted Answer

Days' payable outstanding = (Ending Accounts Payable + Beginning Accounts Payable) / 2 * 365 / Cost of Goods Sold= (40,000 + 32,000) / 2 * 365 / 400,000= 36,000 * 365 / 400,000= 31.2 days

A Company Reports Cost of Goods Sold of $400,000,Ending Inventory