Question

Columbia Sportswear is an outdoor and active lifestyle apparel and footwear company. Assume that last year Columbia reported cost of goods sold of $941 million. This year, cost of goods sold was $1,146 million. Accounts payable was $174 million at the end of last year and $214 million at the end of this year.

Required:

1. For this year, compute the average number of days that Columbia's accounts payable are outstanding. (Assume 365 days in a year. Do not round intermediate calculations. Round your final answer to nearest whole number.)

Number of days______

Answer 1

Ans 62 days

Days Payable Outstanding = Average accounts payable / Cost of Goods Sold * 365

                                           = ( (174+214)/2) / 1146 * 365

                                          = 61.79 days

                                         or 62 days (Rounded off)