Robinson Company has current assets $65,000 and current liabilities of $40,000, of which accounts payable are $35,000.

Question:

Robinson Company has current assets $65,000 and current liabilities of $40,000, of which accounts payable are $35,000. Robinson’s cost of goods sold is $230,000, its merchandise inventory increased by $10,000, and accounts payable were $25,000 the prior year. Calculate Robinson’s working capital, payables turnover, and days’ payable.

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...