The Mountain Top Shoppe has sales of $512,000, average accounts receivable of $31,400 and average accounts payable of $24,800

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?    A.  21.76 days B.  22.38 days C.  24.90 days D.  25.89 days E.  26.67 days Payables turnover = ($512,000 × 0.71)/$24,800 = 14.6581 Payables period = 365/14.6581 = 24.90 days

65.

HG Livery Supply had a beginning accounts payable balance of $57,300 and an ending accounts payable balance of $55,100. Sales for the period were $610,000 and costs of goods sold were $458,000. What is the payables turnover rate?    A.  8.15 times B.  8.39 times C.  9.02 times D.  9.86 times E.  10.85 times Payables turnover = $458,000/[($57,300 + $55,100)/2] = 8.15 times

66.

Your firm has an inventory turnover rate of 14, a payables turnover rate of 8, and a receivables turnover rate of 19. How long is your firm's operating cycle?    A.  45.06 days B.  45.28 days C.  45.63 days D.  53.13 days E.  53.78 days Inventory period = 365/14 = 26.07 days Accounts receivable period = 365/19 = 19.21 days Operating cycle = 26.07 + 19.21 days = 45.28 days