QUESTION 2Which of the following alternatives represents the correct trade payables payment period of Mxo Limited for year 2021?A. 64.90B. 76.54C. 155.04D. 37.98E. 77.52 The following information was extracted from the financial records of Mxo Limited at28 February 2021, the end of the financial year.20212020RRInventory75 30022 400Other financial assets130 000125 000Other financial liabilities159 000180 000Trade receivables57 30047 400Trade payables32 90028 500Additional information:1. The gross profit percentage is 38% on sales.2. Purchases for the year amounted to R295 000 and 49% thereof were on credit.3. Ratios reported in year ended 28 February 2020:Trade receivables collection period – 66.9 daysTrade payables payment period – 64.9 daysInventory turnover rate – 6 times4. Only 27% of the total sales were cash sales.

Trade Payable Payment Period Trade payable payment period represents time lag between the credit…

Answered: QUESTION 2 Which of the following…

QUESTION 2 Which of the following alternatives represents the correct trade payables payment period of Mxo Limited for year 2021?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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