Amazon.com, Inc. is evaluating its accounts payable turnover for the quarter. The following data

is provided:

● Cost of Goods Sold: $15,000,000

● Beginning Accounts Payable: $4,000,000

● Ending Accounts Payable: $6,000,000

a) Compute the Accounts Payable Turnover Ratio. b) Determine the Average Payment Period.

c) Analyze the impact of extending the payment period on cash flow. d) Evaluate the impact on

liquidity if Amazon shortens the payment period. e) Assess the implications of improving

accounts payable turnover on working capital.