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How many days does the firm take to pay suppliers

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Pennington's has annual sales of $1.46 million. The cost of goods sold is equal to 78 percent of sales. The firm has an average accounts receivable balance of $148,900 and an average accounts payable balance of $163,500. How many days on average does it take the firm to pay its suppliers?

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The solution explains how to calculate the average number of days it takes the firm to pay its suppliers.

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