Decrease in inventory $375 Decrease in accounts payable 190 Increase in notes payable 210 Increase in accounts receivable 105 10. Calculating Average Payables Period [LO2] Tortoise, Inc., had a cost of goods sold of $28,834. At the end of the year, the accounts payable balance was $6,105. How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ratio imply
Decrease in inventory $375 Decrease in accounts payable 190 Increase in notes payable 210 Increase in accounts receivable 105 10. Calculating Average Payables Period [LO2] Tortoise, Inc., had a cost of goods sold of $28,834. At the end of the year, the accounts payable balance was $6,105. How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ratio imply
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.16E
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Decrease in inventory $375
Decrease in accounts payable 190
Increase in notes payable 210
Increase in accounts receivable 105
10. Calculating Average Payables Period [LO2] Tortoise, Inc., had a cost of goods
sold of $28,834. At the end of the year, the accounts payable balance was $6,105.
How long on average did it take the company to pay off its suppliers during the
year? What might a large value for this ratio imply?
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