Wardlow Sales, Inc.€™s comparative income statements and balance sheets show the following selected information for 2011 and 2012:

Requirements
1. Calculate the company€™s accounts payable turnover and days payable outstanding (DPO) for 2011 and 2012.
2. On the basis of this computation alone, has the company€™s liquidity position improved or deteriorated during2012?

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2012 2011 Cost of goods sold. Average accounts payable $2,700,000 2,500,000 250,000 300,000