LoDo, Inc Has Sales of $642,000 and Average Accounts Payable of of $36,400

question 338

Multiple Choice

LoDo, Inc. has sales of $642,000 and average accounts payable of $36,400. The cost of goods sold is equivalent to 65% of sales. How long does it take LoDo to pay its suppliers?

• A) 11.46 days
• B) 13.45 days
• C) 20.69 days
• D) 26.18 days
• E) 31.84 days

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Definitions:

Turnover Rates

The percentage of employees leaving a company over a specific period, indicative of workforce stability.

Defined Contribution Plans

Retirement savings plans where the amount contributed to the plan is defined, but the future benefit can vary based on investment performance.

Retirement Income Risk

The risk of having insufficient funds to cover expenses in retirement, considering various factors like longevity, inflation, and healthcare costs.

Underfund Liability

The shortfall or deficit when the assets of a fund, like a pension, are insufficient to cover the obligations.