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6 February, 18:40

The Mountain Top Shoppe has sales of $512,000, average accounts receivable of $31,400 and average accounts payable of $24,800. The cost of goods sold is equivalent to 71 percent of sales. How long does it take The Mountain Top Shoppe to pay its suppliers?

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  1. 6 February, 21:13
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    How long does it take The Mountain Top Shoppe to pay its suppliers?

    25 days

    Explanation:

    Sales $512,000

    COGS 71%

    COGS $363,520

    Av Acc Receiv 31.400

    Av Acc Payable 24.800

    Days 365

    DPO - Days Payables Outstanding = => ($24,800/$363,520) * 365 = 25 Days
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