Question

The Down Towner has sales of $748,320 and average accounts payable of $128,209. The cost of goods sold is equivalent to 62 percent of sales. How long does it take the company to pay its suppliers

Answer 1

See below

Step-by-step explanation:

Given the above information

Cost of goods sold would be = 62% × $748,320 = $463,958

Account payable days = (365 × $128,209)/$463,958

= 101 days