Question
A company reports the following information: 2019 2020 Average number of days of sales in inventory 61 days 55 days Average number of days to
A company reports the following information:
2019 2020
Average number of days of sales in inventory 61 days 55 days
Average number of days to collect receivables 31 days 30 days
The company is required to pay its accounts payable is 60 days. Which of the following statements is true?
The company is not able to pay its accounts payable within 60 days in both years
The company is not able to pays its accounts payable within 60 days in 2020
The company is not able to pay its accounts payable within 60 days in 2019
The company will be able to pay its accounts payable in time in both years
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Management Accounting Information for creating and managing value
Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne
8th edition
9781760420413 , 978-1760420406
