Goldsboro Industries Has an Average Accounts Payable Balance of $680,000

question 3

Essay

Goldsboro Industries has an average accounts payable balance of $680,000.Its annual cost of goods sold is $4,500,000,and it receives terms of 1/10,net 40 from its suppliers.Goldsboro chooses to forgo this discount.Is Goldsboro managing its accounts payables well?

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Definitions:

Tariff

A charge levied by the government on goods that are brought into or sent out of the country.

North American Free Trade Agreement

The North American Free Trade Agreement (NAFTA) was an agreement among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

Wages

The compensation paid by employers to employees for their labor, typically expressed as an hourly rate, monthly salary, or piece rate.

Economic Well-Being

A measure of how well individuals, communities, and societies prosper economically, taking into account wealth, consumption, and access to resources.