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

question 14

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 payable well?

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Definitions:

Design Thinking

An iterative process in solving problems creatively and innovatively by understanding the human needs involved, re-framing the problem in human-centric ways, and adopting a hands-on approach in prototyping and testing.

Problem Solving

The process of identifying a problem, devising alternatives to solve it, and implementing a solution.

Business Intelligence

The use of data analysis tools and methodologies by organizations to make data-driven decisions.

Escalating Commitment

A behavior pattern in which an individual or group continues to follow a failing course of action based on the time, money, or resources already invested.