Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 8 10 points Save Answer The Carpentry Shop (CP) has sales of $398,600, costs of $254,800, depreciation expense of $26,400, account receivable balance of

image text in transcribed

Question 8 10 points Save Answer The Carpentry Shop (CP) has sales of $398,600, costs of $254,800, depreciation expense of $26,400, account receivable balance of $25,000, account payable balance of $15,000, interest expense of $1,600, and a tax rate of 34 percent. If CP has net Income of $76,428, and incurs no additional cost other than pure production cost, how long on average does it take the company to pay off its trade credits during the year? 15 days 15.5 days 18.5 days 21.5 days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Econometrics

Authors: Peijie Wang

1st Edition

0415426693, 978-0415426695

More Books

Students also viewed these Finance questions