Question
Facebook, Inc. is analyzing its accounts payable for the quarter. The following data is provided: Purchases on Credit: $8,000,000 Beginning Accounts Payable: $3,000,000
Facebook, Inc. is analyzing its accounts payable for the quarter. The following data is provided:
● Purchases on Credit: $8,000,000
● Beginning Accounts Payable: $3,000,000
● Ending Accounts Payable: $5,000,000
● Cash Payments to Suppliers: $7,000,000
a) Calculate the Accounts Payable Turnover Ratio. b) Determine the Average Payment Period.
c) Compute the Purchases Discount Percentage. d) Analyze the Cash Payments to Suppliers.
e) Evaluate the Change in Accounts Payable.
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Financial Statement Analysis and Security Valuation
Authors: Stephen Penman
5th edition
78025311, 978-0078025310
