In: Finance
For the past year, Coach, Inc., had a cost of goods sold of
$59,882. At the end of the year, the accounts payable balance was
$13,589.
How long on average did it take the company to pay off its
suppliers during the year? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Days’ sales in payables
days
Days’ sales in payables=(Accounts payable/Cost of goods sold)*365 days
=(13589/59882)*365 days
which is equal to
=82.83 days(Approx).