Kinston Industries Has an Average Accounts Payable Balance of $220,000

question 46

Essay

Kinston Industries has an average accounts payable balance of $220,000.Its annual cost of goods sold is $5,475,000,and it receives terms of 2/10,net 30 from its suppliers.Kinston chooses to forgo this discount.Is Kinston managing its accounts payables well?

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Definitions:

Beta Waves

The brain wave pattern associated with mental activity.

Alpha Waves

Brain waves detected via EEG that are associated with relaxed, wakeful states, typically present during meditation and light sleep.

Theta Waves

Brainwave patterns associated with stages of sleep and deep meditation, reflecting a state of relaxation.

Delta Waves

Slow brain waves that are present in deep sleep and represent the deepest stage of dreamless sleep.