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Concept introduction:
Days’ payable outstanding:
Days’ payable outstanding tells about the number of days a company takes to repay its’ creditors. In other words we can say that it shows relationship between accounts payable and cost of goods sold. Low number of days shows that a company is paying creditors quickly but higher the number of days shows that a company is not able to pay creditors quickly.
Requirement 1:
Days’ payable outstanding for the current year.
Concept introduction:
Days’ payable outstanding:
Days’ payable outstanding tells about the number of days a company takes to repay its’ creditors. In other words we can say that it shows relationship between accounts payable and cost of goods sold. Low number of days shows that a company is paying creditors quickly but higher the number of days shows that a company is not able to pay creditors quickly.
Requirement 2:
Days’ payable outstanding for the prior year.
Concept introduction:
Days’ payable outstanding:
Days’ payable outstanding tells about the number of days a company takes to repay its’ creditors. In other words we can say that it shows relationship between accounts payable and cost of goods sold. Low number of days shows that a company is paying creditors quickly but higher the number of days shows that a company is not able to pay creditors quickly.
Requirement 3:
Did days’ payable outstanding increase or decrease from the prior year?
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Chapter C Solutions
Managerial Accounting
- How long did it take Dark Knight to collect from its customers who were extended credit in Year 2022? Use Year 2022 balance sheet figures when needed. Round you answer to three decimal places, e.g., 124.4456 days should be entered as 124.446.arrow_forwardIn cell E7, add a formula that calculates the monthly payment amount assuming that the payment is due at the beginning of the month. Subtract the “Downpayment” amount from the principle. (Use the PMT Function as Formula in Excel)arrow_forwardprincipal, r is interest rate, n is number of compounding periods per year, t is time, in years, and A is account balance. Use the compound-interest formula to find the account balance A, where P P compounded 1 $55,716 4-% Quarterly 85 The account balance is approximately $ (Simplify your answer. Type an integer or decimal rounded to two decimal places as needed.) esc 80 F2 F3 F4 F10 FII F12 @ 2# $ % & * 2 4 5 6 7 Q W E R Y Parrow_forward
- The annual force of interest for an account at t years is given by St = t^2 / (4+1)^3. A deposit of $D is made at time 0. Calculate the number of years until the account balance is 3D. (a) 2.00 (b) 2.84 (c) 3.14 (d) 4.70 (e) 4.82arrow_forward12- Due to the concept of periodicity, interest, rent, etc. collected in the current period but concerning the future period. In which account are some incomes, such as, temporarily monitored? a) 380 Revenues for Future Months Hs. B) 181 Income Accruals Hs. NS) 642 Interest Income Hs. D) 649 Other Ordinary Income and Profits Hs. TO) 647 Rediscount Interest Income Hsarrow_forwardAnswer the following questions correctly and show your Complete Solution. a. 3 1/5% is equivalent to b. Find the actual time and approximate time from October 5, 2020 to June 30, 2021 c. Which of the following are NOT true?I. Principal is the money given or paid invested in the origin dateII. Origin date is a date on which money is paid by the borrower.III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.arrow_forward
- How do i calculate the average daily balance for the biling period. How do i get to the answer 6168.39?arrow_forwardAnswer the following and show your Complete Solution. Find the actual time from October 5, 2019 to December 11, 2019a. 98 daysb. 97 daysc. 79 daysd. 87 days Which of the following are NOT true?I. Principal is the money given or paid invested in the origin dateII. Origin date is a date on which money is paid by the borrower.III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.arrow_forwardUse the compound-interest formula to find the account balance A, where P is principal, r is interest rate, n is number of compounding periods per year, t is time, in years, and A is account balance. P r compounded t 1 1 $53,530 Quarterly 22 C The account balance is approximately $. (Simplify your answer. Type an integer or decimal rounded to two decimal places as needed.)arrow_forward
- Compute the present values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value Present Value Interest Rate (Payment made on last day of period) (Payment made on first day of period) Payment Years (Annual) 748.09 8. 14 % 8,668.26 14 7 21,022.93 24 70,412.54 32arrow_forwardAnswer the following questions that are related to the following Interest Payable T-account: February transactions Debit Req A Required: a. What is the amount of the February 28 adjustment? b. What account would most likely have been credited for the amount of the February transactions? c. What account would most likely have been debited for the amount of the February 28 adjustment? d. Why would this adjusting entry have been made? Complete this question by entering your answers in the tabs below. Req B to D Interest Payable Debit February transactions What is the amount of the February 28 adjustment? February 28 adjustment Req A February 1 balance 1,500 February 28 adjustment February 28 balance 4 Req B to D www February 1 balance 1,500 February 28 adjustment February 28 balance. Credit Complete this question by entering your answers in the tabs below. Navt b. What account would most likely have been credited for the amount of the February transactions? c. What account would most…arrow_forwardConsider the problem below... Find the accumulated balance after 3 years when $6500 is deposited into an account that compounds monthly with an APR of 4% compounding monthly. Match the values given in the problem with the correct notation. Question 2 options: 1234 0.04 1234 3 1234 12 1234 6500 1. P 2. APR 3. n 4. Yarrow_forward
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