Question

Asked Dec 14, 2019

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Crystal Oil has $9 million in accounts payable, $1.8 in saleries and taxes payable, and $10.4 in other current liabilities. If Crystal Oil had a cost of sales of $54 million and selling, general, and admisitrative expenses of $18 million, what is the length of its payables deferal period? *show work*

A) 10.47 days

B) 73.02 days

C) 54.75 days

D) 45.63

Step 1

Payables deferral period is a measure of delay between when a firm receives a bill and pays towards its payment.

It is calculated using the formula:

Step 2

SG&A refers to the selling, general, and administrative expenses.

Step 3

Payables amount will be the sum of accounts payable and salaries...

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