For the past year, HIM, Inc., had a cost of goods sold of $48,813. At the end

Question:

For the past year, HIM, Inc., had a cost of goods sold of $48,813. At the end of the year, the accounts payable balance was $11,816. How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ratio imply?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...