The Following Data Is Available for Tommy's Toys for the Years

question 36

Essay

The following data is available for Tommy's Toys for the years 2008 through 2011:
$\begin{array}{lcccc}& \underline{2011} & \underline{2010} & \underline{2009} & \underline{2008} \\\text { Cost of goods sold } & \$ 7,506 & \$ 7,646 & \$ 7,799 & \$ 7,815 \\\text { Accounts payable }& \$ 1,023 & \$ 1,022 & \$ 878 & \$ 896\end{array}$

A. Calculate the accounts payable turnover ratio for the following years:
1. 2011
2. 2010
3. 2009
B. Calculate the number of days it is taking Tommy's Toys to pay their vendors (assume a 365 day year):
1. 2011
2. 2010
3. 2009
C. Explain whether Tommy's Toys is doing a better job of paying their vendors in a timely manner.

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Definitions:

Equitable

Pertains to fairness or impartiality in the distribution of benefits and burdens within society.

Marginal Cost

The extra expenditure involved in generating an additional unit of a product or service.

Social Value

The importance or benefit that something has to society, which might not be reflected in its market price, such as education or environmental protection.

Resources

Assets, materials, and inputs used to produce goods and services, including natural resources, human resources, and capital.