If accounts payable is $1,116 and cost of goods sold is $11,315,what is days' payable outstanding?

A) 30 days
B) 45 days
C) 36 days
D) 33 days
E) 40 days

Question

If accounts payable is $1,116 and cost of goods sold is $11,315,what is days' payable outstanding?A) 30 daysB) 45 daysC) 36 daysD) 33 daysE) 40 days

Chloe Buchanan · Accepted Answer

Final Answer : C, Explanation :  Days' Payable Outstanding (DPO) = (Accounts Payable / Cost of Goods Sold) * 365DPO = (1,116 / 11,315) * 365 = 36.02 daysRounded to the nearest integer, the answer is 36 days. Therefore, the best choice is (C).

If accounts payable is $1,116 and cost of goods sold is $11,315,what is days' payable outstanding?

A) 30 days
B) 45 days
C) 36 days
D) 33 days
E) 40 days

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