Determine the accounts payable days, Accounting Standards

SQB Corporation reports sales of $10,000,000 for Year 2, with a gross profit margin of 40%.  20% of SQB's sales are on credit.    

 

Year 1

Year 2

Accounts receivable

$  150,000

$  170,000

Inventory

900,000

1,000,000

Accounts payable

1,100,000

1,200,000

Requirements:

1. Accounts receivable days outstanding at the end of Year 2 is (use year-end receivable balance and 360 days in a year):

2. Accounts payable days outstanding at the end of Year 2 is (use average accounts payable for the year and 360 days in a year):

3. Days' sales in inventory at the end of Year 2 is (use year-end inventory amount and 360 days in a year)

Posted Date: 2/16/2013 5:17:22 AM | Location : United States







Related Discussions:- Determine the accounts payable days, Assignment Help, Ask Question on Determine the accounts payable days, Get Answer, Expert's Help, Determine the accounts payable days Discussions

Write discussion on Determine the accounts payable days
Your posts are moderated
Related Questions
A company incurred the following expenditure during the year:                                                                                                    $'000  $'000  Lic

Define Accounting. Briefly explain the accounting concepts which guide the accountant at the recording stage.

2. Now assume that you have been asked how to account for the destroyed drilling operation in the Gulf of Mexico in terms of the destroyed rig and lost natural resources. For the p

When is working capital most likely to increase? A when the business increases its selling prices B when the credit period allowed to customers is reduced C when the credit pe

DOES THE ADOPTION OF IFRS BY DIFFERENT COUNTRIES NECESSARILY MEAN ACCOUNTING PROCEDURES AND PRACTICES THEY ADOPT WILL BE CONSISTENT AND COMPARABLE INTERNATIONALLY

A firm of manufactures, whose books are closed on 31st December, purchased machinery for Rs.50,000 on 15 January, 2010. Additional Machinery was acquired for Rs.10,000 on 1st July,

Now assume that you have been asked how to account for the destroyed drilling operation in the Gulf Mexico in terms of the destroyed right and lost natural resources. Provide a rat

#questionThe book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were

In 1973 and independent seven-member full-time Financial Accounting Standards Board (FASB) replaced the Accounting Principles Board. The FASB has published numerous Statements of F

The main function of accounting is to accumulate accounting data so as to calculate the profit and loss made through the business firm throughout and also to KNOW the financial pos