Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the accounts payable balance was $7,943. How long on average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the accounts payable balance was $7,943. How long on average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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 27BEB: Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had...

See similar textbooks

Related questions

Q: Tripod Company makes all sales on account. During the current year, Tripod has an average accounts…

A: Accounts receivable turnover is calculated by dividing the Net credit sales by the Average accounts…

Q: McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,947,000; 40% of…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Candle Shop, Inc. has net sales on account of $1,700,000. The average net accounts receivable are…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts Receivables where, Average…

Q: ABCD Corporation has credit sales of $8,460,000 and receivables of $1,260,000. Assume there are 365…

A: Ratio analysis is one of useful technique used. Under this, various calculations are done on…

Q: A company reports the following: Sales $572,320 Average accounts receivable (net) 20,440…

A: The question is related to Ratio Analysis. The Accounts Receivables Turonver Ratio is calculated…

Q: Cainhurst Inc. had sales last year totaling $530,000, and its year-end Accounts Receivable were…

A: Days Sales outstanding refers to the number of days a company/firm takes to collect payment from its…

Q: For its most recent year a company had Sales (all on credit) of OMR 830000 and Cost of Goods Sold…

A: For calculation of receivables days, we need to use the following equation Receivables days =Average…

Q: Calvani, Inc., has a cash cycle of 43.5 days, an operating cycle of 63 days, and an inventory period…

A: Variables in the question:Cash cycle=43.5 daysOperating cycle=63 daysInventory period=27 days Cost…

Q: Libscomb Technologies' annual sales are $6,615,140 and all sales are made on credit, it purchases…

A: The question is based on the concept of financial ratios

Q: A company reports the following: Sales $315,360 Average accounts receivable (net) 39,420 Determine…

A: Accounts receivable turnover = ( Net Credit Sales / Average Accounts receivable ) Number of days'…

Q: Medwig Corporation has a DSO of 21 days. The company averages $9,250 in sales each day (all…

A: Ratio analysis used identify the business performance of the company. It is used to measure…

Q: Dome Metals has credit sales of $342,000 yearly with credit terms of net 45 days, which is also the…

A: The conceptual formula used:

Q: CornProducts Corporation ended the year 2018 with an average collection period of 40 days. The…

A: ACCOUNT RECEIVABLE Account Receivable is the Balance Outstanding From the Customer. Account…

Q: A $10,000 face value municipal bond pays $1000 interest at the end of every year. If there are 12…

A: Bond value is the current value of a bond on the basis of the present value of all the cash flows a…

Q: A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts…

A: ACCOUNT RECEIVABLE TURNOVER RATIO Account Receivable Turnover Ratio is the Ratio between Net…

Q: Medwig Corporation has a DSO of 17 days. The company averages $3,500 in sales each day (all…

A: Average accounts receivable can be calculated by following formula:- Days sales outstanding (DSO) *…

Question

Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the
accounts payable balance was $7,943. How long on average did it take the company to
pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
Days' sales in payables
66.00 days

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Last year, Tobys Hats had net sales of 45,000,000 and cost of goods sold of 29,000,000. Tobys had the following balances: Refer to the information for Tobys on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and accounts receivable averaged 437,500. Half of Grunewalds customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewalds nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.)
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
Dexter, Incorporated, had a cost of goods sold of $63,382. At the end of the year, the accounts payable balance was $12,889. How long, on average, did it take the company to pay off its suppliers during the year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16
Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the accounts payable balance was $7,943. How long on average did it take the company to pay off its suppliers during the year? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
For the past year, Hawkeye, Inc., had a cost of goods sold of $63,882. At the end of the year, the accounts payable balance was $12,789. 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.)
Calculate Average Payables Periods For the first year, Hawkeye, Inc., has a cost goods sold of $95,318. At the end of the year, the accounts payable balance was $22,816. How long, on average, did it take the company to pay off its suppliers during the year? What might a large value for this ratio imply?
Blossom Technology's operating cycle is 71 days. Its inventory was $111,000 at the end of last year, and the company had cost of goods sold of $1.4 million. How long does it take Blossom to collect its receivables on average? (Use 365 days for calculation. Round intermediate calculations and final answer to 1 decimal place, e.g. 25.1.) It takes Blossom days to collect on its accounts receivable.
A company has net income of $195,000, a profit margin of 8.3 percent, and an accounts receivable balance of $134,370. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Sanders' Prime Time Lighting Co. has credit sales of $1,836,000 and accounts receivable of $224,400. Compute the value for the average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole number.) Average collection period days
Tripod Company makes all sales on account. During the current year, Tripod has an average accounts receivable balance of $60,000, an average inventory balance of $96,000, cost of goods sold of $345,000, and net income of $117.000. If Tripod's gross margin percentage is 42.5%, what was its average collection period? Round to one decimal point. O 18.3 days O 24.3 days O 30.4 days O 36.5 days O None of the above
McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,947,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 74 days after their purchases. Assume 365 days in year for your calculations. a. What is the days sales outstanding? Round your answer to two decimal places. days b. What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest cent. c. What is the percentage cost of trade credit to customers who take the discount? If your answer is zero, enter zero. Round your answer to two decimal places. d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 74 days? If your answer is zero, enter zero. Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost: Effective cost: % e. What would happen to McEwan's accounts receivable if it toughened up on its collection policy with…