Cash conversion cycle: West Handicrafts, Inc., has net sales of $423,000 with 30 percent of it being credit sales. Its cost of goods sold is $324,000. The firm's cash conversion cycle is 47.9 days. The firm's operating cycle is 86.3 days. What is the firm's accounts payable? Round to the nearest dollar

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Quizplus · Accepted Answer

The correct answer is A.The accounts payable can be calculated as follows:Accounts payable = (Cost of goods sold / 365 days) * Operating cycle - Cash conversion cycleAccounts payable = ($324,000 / 365 days) * 86.3 days - 47.9 daysAccounts payable = $34,087

Cash Conversion Cycle: West Handicrafts, Inc