Average accounts payable

Related BrainMass Solutions

• Net credit position

  Accounts receivable = average daily credit sales X average collection period receivable Accounts payable = average daily credit purchases X average payment period payable b.

• Cash conversion cycle :sample question

  / 365 Accounts receivables period=Average accounts receivables/(Annual sales/365)= 8 days =110/13.7 Accounts payables period=Average accounts payables/(Annual cost of goods

• Cash Conversion Cycle

  Annual Credit purchase= $3,000,000 Daily credit dales= $8,219 =$3,000,000/365 Average Payment Period (APP)= 10 days Therefore accounts payable= $82,190 =$10*8219 Answer: accounts payable= $82,190 Operating Cycle

• Average Accounts payable

  The solution provides the steps to calculate the Average Accounts payable.

• Cash conversion cycle

  /Sales * 365 = 1800*365/45000 = 14.6 days inventory period = Average inventory / COGS* 365 = 4500*365/30000=54.75 days Accounts payable period= Average accounts payable /COGS *365 = 2500*365/30000 = 30.42 days CCC = accounts receivable

• Cash Conversion Cycle: AR period, AP period, inventory period

  Accounts receivable period = Average receivables /Sales * 365 = ((100+120)/2)*365/5000 = 8.03 days Inventory period = Average inventory / COGS* 365 = ((500+600)/2)*365/4200=47.80 days Accounts payable period= Average accounts payable /COGS *

• Average days for the firm to pay its suppliers

  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?

• Cash Conversion Cycle (CCC)

  Operating Cycle (OC) = Average Age of Inventory + Accounts Receivable Period = 75 days + 90 days= 165 days Cash Conversion Cycle (CCC) = Operating Cycle - Accounts Payable Period = Average Age of Inventory + Accounts Receivable Period - Accounts

• How many days does the firm take to pay suppliers

  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?