Ask Question
24 March, 17:19

The Mountain Top Shoppe has sales of $512,000, average accounts receivable of $31,400 and average accounts payable of $24,800. The cost of goods sold is equivalent to 71 percent of sales. How long does it take The Mountain Top Shoppe to pay its suppliers?

+3
Answers (1)
  1. 24 March, 17:37
    0
    How long does it take The Mountain Top Shoppe to pay its suppliers?

    25 days

    Explanation:

    Sales $512,000

    COGS 71%

    COGS $363,520

    Av Acc Receiv 31.400

    Av Acc Payable 24.800

    Days 365

    DPO - Days Payables Outstanding = => ($24,800/$363,520) * 365 = 25 Days
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Mountain Top Shoppe has sales of $512,000, average accounts receivable of $31,400 and average accounts payable of $24,800. The cost of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers