Pennington's Has Annual Sales of $1

question 71

Multiple Choice

Pennington's has annual sales of $1.46 million. The cost of goods sold is equal to 78 percent of sales. The firm has an average accounts receivable balance of $148,900 and an average accounts payable balance of $163,500. How many days on average does it take the firm to pay its suppliers?

• A) 40.88 days
• B) 47.72 days
• C) 49.81 days
• D) 52.40 days
• E) 56.67 days

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