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28 April, 12:22

Selected recent balance sheet and income statement information for The Gap, Inc. follows: (in millions) 2014 Year-end accounts payable $ 1,242 Average accounts payable 1,193 Sales 16,148 Cost of goods sold 9,855 Accounts payable days outstanding for 2014 is:

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  1. 28 April, 12:26
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    46 days

    Explanation:

    Given that,

    Ending Accounts Payable = $1,242

    Cost of goods sold = 9,855

    Average accounts payable = 1,193

    Payable turnover ratio = Cost of goods sold : number of days

    = 9,855 : 365

    = 27

    Days Payable Outstanding:

    = Ending Accounts Payable : Payable turnover ratio

    = $1,242 : 27

    = 46

    Therefore, the payable days outstanding for 2014 is 46.
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