Question
ABC Inc. has a 59-day average payables period. The account payables are $2,737.50 at the beginning and $3,589.50 at the end of the covering year.
ABC Inc. has a 59-day average payables period. The account payables are $2,737.50 at the beginning and $3,589.50 at the end of the covering year. What is the annual cost of goods sold? Use a 365-day year when calculating the APP. (hint: use average account payables)
| a. | $17,265 | |
| b. | $19,571 | |
| c. | $18,992 | |
| d. | $20,123 |
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Entrepreneurial Finance
Authors: Chris LeachJ LeachRonald Melicher
3rd Edition
0324561253, 9780324561258
