Wicker Sales, Inc.’s, comparative income statements and balance sheets show the following selected information for 2020 and 2021:

Requirements

1. Calculate the company’s accounts payable turnover and days’ payable outstanding (DPO) for 2020 and 2021.

2. On the basis of this computation alone, has the company’s liquidity position improved or deteriorated during 2021?

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Cost of goods sold.. Ending inventory.. Beginning inventory. Average accounts payable 2021 $2,850,000 $ 650,000 $ 400,000 $ 285,000 2020 $2,900,000 $ 400,000 $ 250,000 $ 240,000