Asked by Bianca LaForteza on Jul 27, 2024
Verified
True Blue Stores had a beginning accounts payable balance of $56,900 and an ending accounts payable balance of $62,800. Sales for the period were $670,000 and costs of goods sold were $418,000. What is the payables turnover rate?
A) 6.98 times
B) 7.35 times
C) 8.13 times
D) 11.19 times
E) 11.78 times
Payables Turnover Rate
An efficiency ratio that measures how quickly a company pays off its suppliers, calculated as cost of goods sold divided by average accounts payable.
Accounts Payable Balance
The total amount of short-term liabilities or obligations a company owes to its creditors or suppliers.
Sales
The total revenue generated from goods or services sold by a company during a specific period.
- Comprehend the principles of inventory turnover and the method for its calculation.
Verified Answer
Learning Objectives
- Comprehend the principles of inventory turnover and the method for its calculation.
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