Question
Wycliff Contractors, Inc., has the following monthly purchasing schedule and ending accounts payable: Dec. Jan. Feb. Mar. Apr. May June Purchases $400 $375 $350 $325
- Wycliff Contractors, Inc., has the following monthly purchasing schedule and ending accounts payable:
|
| Dec. | Jan. | Feb. | Mar. | Apr. | May | June |
| Purchases | $400 | $375 | $350 | $325 | $400 | $500 | $650 |
| Ending payables |
| 342 | 320 | 297 | 345 | 430 | 555 |
- Calculate the days payables outstanding for March, April, May, and June using quarterly purchases to calculate the average daily purchases.
- The following table shows the amount of payables remaining in successive months for purchases made during the January through June period of operations. Convert the table to a balance fraction matrix.
|
| Accounts Payable Balances | ||||||
|
| Purchases | Jan. | Feb. | Mar. | Apr. | May | June |
| Jan. | $375 | $262 | $75 |
|
|
|
|
| Feb. | 350 |
| 245 | $70 |
|
|
|
| Mar. | 325 |
|
| 227 | $65 |
|
|
| Apr. | 400 |
|
|
| 280 | $80 |
|
| May | 500 |
|
|
|
| 350 | $100 |
| June | 650 |
|
|
|
|
| 455 |
|
|
|
| $320 | $297 | $345 | $430 | $555 |
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ISE Business Accounting
Authors: Frank Wood, Alan Sangster
8th Edition
0273638408, 9780273638407
