Using the Information Provided,what Is the Accounts Payable Cycle for the Firm

question 44

Multiple Choice

Using the information provided,what is the accounts payable cycle for the firm? Perfect Purchase Electronics
Selected Income Statement Items,2014
Cash Sales $1,500,000
Credit Sales $7,500,000
Total Sales $9,000,000
COGS $6,000,000
Perfect Purchase Electronics
Selected Balance Sheet Accounts
12/31/2014 12/31/2013 Change
Accounts Receivable $270,000 $240,000 $30,000
Inventory $125,000 $100,000 $25,000
Accounts Payable $110,000 $90,000 $20,000

• A)4.06 days
• B)4.87 days
• C)6.08 days
• D)24.33 days

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Definitions:

Skewed

Referring to data that is not symmetrically distributed, often having a longer tail on one side of the peak.

Baseball Games

Competitive sporting events featuring two teams that take turns batting and fielding, governed by a set of rules.

Grocery Bills

The total amount of money spent on purchasing food and other items from a grocery store.

Bank Statement

A summary of financial transactions that occurred over a period on a bank account.