Question
Hospital A had the following selected account balances at the year-end: Amounts in thousands Patient revenue $135,000 Cost of goods sold 90,000 Net income 17,000
Hospital A had the following selected account balances at the year-end:
| Amounts in thousands |
|
| Patient revenue | $135,000 |
| Cost of goods sold | 90,000 |
| Net income | 17,000 |
| Supplies | 10,400 |
| Accounts Receivable | 13,500 |
| Accounts payable | 10,000 |
How many days, on average, does it take Hospital A to pay its outstanding accounts payable?
A. 11.6 days
B. 32.1 days
C. 40.5 days
D. 55.5 days
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
978-0078025914
