Calculate accounts payable days for the year 20X2 COGS for 2

Calculate accounts payable days for the year 20X2:

COGS for 20X2: $15,500

COGS for 20X1: $14,000

Days in a year: 365

Accounts payable at 31 December 20X2: $300

Select one:

a. 7.4

b. 46.7

c. 7.1

d. 7.8

e. 51.7

Solution

Answer is

7.1 Days

Accounts payable days =360/(Cost of Goods Sold/Account Payable)

=7.1