The balance of Lloyd Corporation's accounts payable at the beginning of the most recent year was $53,000. At the end of the year, the accounts payable balance was $55,000. Lloyd's sales revenuefor the year was $3,130,000, while its cost of goods sold for the year was $1,566,000. Calculate Lloyd's days' payable outstanding (DPO) for the year. Assume inventory levels are constantthroughout the year. If the credit terms from Lloyd's suppliers are n/30, how would you interpret Lloyd's DPO? (Round the DPO to two decimal places, XXX.)KIYELloyd's days' payable outstanding for the year isA Lloyd is paying later than acceptable since the credit terms are n/30, which is usually characteristic of a company with great liquidityB. Since the credit terms are n/30, Lloyd is paying ahead of schedule, which is usually characteristic of a company with great liquidityC. Since the credit terms are n/30, Lloyd is paying later than acceptable, which is usually characteristic of a company with poor liquidityD. Lloyd is paying ahead of schedule since the credit terms are n/30, which is usually characteristic of a company with poor liquidity0 0 0 0

The days' payable outstanding is computed by dividing 365 by the account payable turnover ratio. The…

The balance of Lloyd Corporation's accounts payable at the beginning of the most recent year was $53,000. At the end of the year, the accounts payable balance was $55,000 Lloyd's sales revenue for the year was $3,130,000, while its cost of goods sold for the year was $1,566,000. Calculate Lloyd's days' payable outstanding (DPO) for the year. Assume inventory levels are constant throughout the year. If the credit terms from Lloyd's suppliers are n/30, how would you interpret Lloyd's DPO? (Round the DPO to two decimal places, XXX) Lloyd's days payable outstanding for the year OA Lloyd is paying later than acceptable since the credit terms are n/30, which is usually characteristic of a company with great liquidity OB. Since the credit terms are n/30, Lloyd is paying ahead of schedule, which is usually characteristic of a company with great liquidity OC. Since the credit terms are n/30, Lloyd is paying later than acceptable, which is usually characteristic of a company with poor liquidity OD. Lloyd is paying ahead of schedule since the credit terms are n/30, which is usually characteristic of a company with poor liquidity

The balance of Lloyd Corporation's accounts payable at the beginning of the most recent year was $53,000. At the end of the year, the accounts payable balance was $55,000 Lloyd's sales revenue for the year was $3,130,000, while its cost of goods sold for the year was $1,566,000. Calculate Lloyd's days' payable outstanding (DPO) for the year. Assume inventory levels are constant throughout the year. If the credit terms from Lloyd's suppliers are n/30, how would you interpret Lloyd's DPO? (Round the DPO to two decimal places, XXX) Lloyd's days payable outstanding for the year OA Lloyd is paying later than acceptable since the credit terms are n/30, which is usually characteristic of a company with great liquidity OB. Since the credit terms are n/30, Lloyd is paying ahead of schedule, which is usually characteristic of a company with great liquidity OC. Since the credit terms are n/30, Lloyd is paying later than acceptable, which is usually characteristic of a company with poor liquidity OD. Lloyd is paying ahead of schedule since the credit terms are n/30, which is usually characteristic of a company with poor liquidity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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