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

question 36

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)31.85 days

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Definitions:

Incentive Compensation

A form of remuneration designed to reward employees for achieving specific performance targets or objectives, often aimed at motivating higher levels of productivity.

Annual Salary

The total amount of money a person earns from their job in a year, often expressed as a pre-tax figure or before deductions.

Job Enrichment

A job design strategy intended to enhance employee satisfaction and performance by adding tasks that increase the job’s depth or meaningfulness.

Job Enlargement

A method of job design that increases the range and variety of tasks performed by an employee to enhance job satisfaction.