AC Corporation has beginning inventory of $9,049, accounts payable of $7,212, and accounts receivable of $6,333. The end of year

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AC Corporation has beginning inventory of $9,049, accounts payable of $7,212, and accounts receivable of $6,333. The end of year

values are $7,850 for inventory, $8,515 for accounts payable, and $7,029 for accounts receivable. Net sales are $91,200 and costs of goods sold are $63,008. How many days are in the accounts payable period? g

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Free_Kalibri [3.7K] · Answer 1 · 2026-03-19T21:01:21+03:00

The average duration for the AC Corporation to settle its accounts payable is 46 days. Average Accounts Payable amounts to $7863.5, with a Cost of Goods Sold of $63,008, across a period of 365 days. The Days Payable Outstanding can be calculated using the following formula: (Average Accounts Payable / Cost of Goods Sold) x Number of Days in Accounting Period. By substituting the relevant values, we have: ($7,863.5 / $63,008) x 365, which gives us Days Payable Outstanding equal to 45.55. Consequently, the company averages 46 days to fulfill its accounts payable obligations.