Question

Find the average payment period if accounts payable is $20,000, cost of goods sold is $200,000, and sales are $500,000.

Answer 1

36.5

Step-by-step explanation:

Account payable = $20,000

The cost of goods sold is $200,000

Sales are $500,000

The average payment period can be calculated as follows

= 20,000/200,000/365

°= 20,000/547.9

36.5

Henbe the average payment period is 36.5